At the center of the latest US crypto legislation debate is a growing tension between crypto firms and traditional banks. Banking groups argue that allowing exchanges to offer stablecoin yields creates a loophole and could pull deposits away from the banking system. On the other hand, crypto advocates see this as an overreaction and even accuse banks of trying to limit competition.

This ongoing battle is slowing down progress on clear crypto regulations. Despite multiple meetings and attempts to reach a compromise, both sides remain far apart. The situation highlights how regulation isn’t just about rules—it’s also about balancing power between emerging technologies and established financial institutions.