Key Turning Point in U.S. Crypto Regulation: Bank and Crypto Compromise Plan Emerges, Stablecoins at the Core

On February 5th, news reports indicate that the United States is accelerating the development of a cryptocurrency regulatory framework, aiming to establish a new balance between the traditional banking system and digital asset innovation. Senator Tim Scott, Chairman of the Senate Banking Committee, recently stated that as long as consumer protection and financial stability are maintained, compromises between crypto companies and banks can help keep innovation within the United States rather than forcing it overseas. He emphasized that competition and technological progress can reduce costs and expand the reach of financial services.

Currently, stablecoin regulations have become a core focus of policy discussions. Legislators hope to set clear boundaries for how “digital dollars” operate within the U.S. financial system, while crypto companies seek to avoid excessive restrictions. Multiple sources indicate that some industry organizations have agreed to strengthen custody standards, allowing banks to securely hold digital assets within a compliant framework, thereby pushing previously stalled legislation back to the negotiation table. As midterm elections approach, policymakers also face practical pressure to demonstrate progress.

For years, the relationship between banks and the crypto industry has been tense, with regulators often viewing it as a source of risk. Now, attitudes are beginning to shift. Supporters believe that cooperation between the two can enhance America’s financial competitiveness and accelerate the tokenization of real-world assets, cross-border settlement, and cost optimization. A clear regulatory environment can also provide long-term planning certainty for businesses.

However, market reactions remain divided. Some practitioners worry that expanding banks’ influence could squeeze out startups; others believe strict regulation may favor large institutions. Regardless, this negotiation is seen as a critical turning point in U.S. cryptocurrency policy.

If a compromise is ultimately reached, the U.S. could maintain its leadership in the global digital asset competition; otherwise, innovation may continue to flow abroad. The direction of regulation will profoundly impact the crypto financial landscape over the next decade.