- Senate Republicans consider adding community bank deregulation to crypto bill
- Move aims to push Senate housing bill through the House
- Closed-door discussions held with Trump administration officials
- House Republicans remain opposed to current Senate housing package
- Banks raise concerns over stablecoin yield payments in crypto legislation
Senate Republicans Explore Legislative Trade-Off
Senate Banking Committee Republicans are discussing a strategy to attach community bank deregulation provisions to pending cryptocurrency legislation. The move is aimed at encouraging the House of Representatives to approve a Senate-passed housing bill, according to individuals familiar with the discussions. The proposal involves incorporating banking provisions from a House-approved housing measure into the Senate’s crypto market structure bill. In exchange, House Republicans would be expected to pass the Senate’s housing package without changes, report from Politico.
Closed-Door Talks Signal Strategic Shift: The idea was discussed during a closed-door meeting on Thursday that included Senate Republicans and officials from the Trump administration. The meeting focused on advancing crypto market structure legislation, which Republicans aim to move forward next month. Sources indicated that discussions remain ongoing and no final decisions have been made regarding whether the banking provisions will ultimately be added to the crypto bill. Jasper Goodman shared on X.
Housing Bill Standoff Continues
The proposal comes amid a legislative standoff between the House and Senate over housing policy. The Senate recently passed a sweeping housing bill with strong support, but House Republicans have resisted adopting it without modifications. Instead, the House previously passed its own housing legislation, which includes a section focused on banking deregulation measures. These provisions are considered a priority for House Financial Services Committee Chair French Hill.
A spokesperson for Hill stated that the House remains open to reconciling differences between the two versions of the housing bill. Senator Katie Britt of Alabama, who chairs a Senate Banking subcommittee on housing, was among those who promoted the idea of linking the two legislative efforts. However, her office has not publicly commented on the discussions. Meanwhile, Senator John Kennedy of Louisiana expressed reservations during the meeting. He raised concerns about advancing the crypto market structure bill if the House does not act on the Senate’s housing legislation.
Banking Concerns Over Crypto Provisions
In addition to legislative strategy, Senate Republicans are also attempting to address concerns raised by traditional banking institutions regarding crypto regulation. A key issue under negotiation is whether digital asset exchanges should be permitted to offer yield or interest-like payments to stablecoin holders. Banks argue that such features could trigger deposit outflows from traditional financial institutions.
Next Steps for Crypto Legislation: Lawmakers are currently in the final stages of negotiations on the crypto market structure bill. Senate Republicans aim to advance the legislation out of committee as early as next month. The outcome of the proposed legislative trade-off may play a significant role in determining both the future of crypto regulation and the fate of federal housing reform efforts.
