Mike Novogratz Tells Anthony Scaramucci Crypto Industry Will Lose Stablecoin Rewards Battle To Banking Lobby: 'There'll Be A Compromise'

Core Viewpoint - The cryptocurrency industry is expected to compromise on the stablecoin rewards clause in the market structure bill, as it faces a strong banking lobby [2][3]. Group 1: Industry Dynamics - Galaxy Digital Inc. CEO Mike Novogratz believes the cryptocurrency industry will ultimately lose the battle against the banking lobby, leading to a compromise where stablecoin companies can offer rewards for usage but not on idle balances [2]. - Novogratz expressed that the overall bill is beneficial for the industry, indicating a strong commitment from Democrats to pass the legislation [3]. Group 2: Legislative Context - The urgency for the legislation stems from two main reasons: the desire for America to lead in digital assets and the political implications of being anti-crypto [4]. - Coinbase has withdrawn its support for the cryptocurrency market structure bill due to objections regarding a rule that would prevent cryptocurrency platforms from paying rewards on idle stablecoin balances, which is not applicable to traditional banks [5]. Group 3: Market Reactions - Coinbase CEO Brian Armstrong has called for a "level playing field" for cryptocurrency companies, advocating for users' rights to earn a 3.8% yield on their stablecoins [5].