U.S. senators made "substantial progress" on a comprehensive crypto market bill after talks with bank executives.

PANews reported on December 12th, citing The Block, that Senator Tim Scott, Chairman of the Senate Banking Committee, stated that "substantial progress" is being made in pushing a major cryptocurrency bill into law after meeting with top bank CEOs on Thursday. Scott met with Brian Moynihan of Bank of America, Jane Fraser of Citigroup, and Charlie Scharf of Wells Fargo on Thursday to discuss this landmark legislation. The bill aims to establish rules for the entire digital asset industry and grant regulatory agencies such as the SEC and CFTC corresponding powers. This week, the three bank CEOs are expected to meet with senators to discuss cryptocurrency legislation proposals. The meetings were reportedly held separately, one with Democrats and one with Republicans, and both meetings were described as "friendly." Sources familiar with the matter revealed that the meetings discussed issues such as yield, decentralized finance, and anti-money laundering.

The banking association believes that the GENIUS Act, which became law this summer, has loopholes that need to be addressed. They argue that the problem lies in the law's insufficient restrictions on stablecoin issuers paying interest to holders, which could make these assets more attractive stores of value and credit mechanisms than simply a means of payment, thus creating "market-distorting incentives" for the banking industry. Furthermore, the banking group believes that the restrictions imposed by the GENIUS Act are easily circumvented by exchanges, brokers, and other related parties.