US Stablecoin Bill Stalls as Banks Reject White House Compromise Over $500B Deposit Risk

US cryptocurrency bill negotiations have stalled after banks rejected a White House compromise that would allow stablecoin issuers to offer yield products in defined cases such as peer-to-peer payments while banning interest on idle holdings, Odaily Planet Daily reports. Crypto firms agreed to the framework, but banks are demanding tighter limits on which businesses can offer rewards, warning the terms could trigger deposit flight; Standard Chartered estimates stablecoins could draw roughly $500 billion in deposits from the US banking system by end-2028. Trump wrote on Truth Social he will not let the banking industry "undermine our strong crypto agenda," and industry participants including Coinbase, Ripple and the Blockchain Association joined talks, with Blockchain Association CEO Summer Mersinger saying the path to a viable deal is clearer than a month ago. The bill still requires backing from at least seven Democratic senators—some seeking a ban on elected officials profiting from crypto businesses and others pushing tougher anti-money-laundering rules—reconciliation with the Senate Agriculture Committee's version, and time on a crowded Senate calendar that also includes housing policy reforms; Adrian Wall of the Digital Sovereignty Alliance said that if the bill is not signed by the president by July, midterm elections will close the window for passage.