Recently, there was an interesting discussion at the World Liberty Forum about who is actually responsible for the halt in negotiations regarding the crypto market structure bill. Turns out, it’s not individual banks, but banking trade groups that are the main actors in this.

According to one crypto industry leader, these trade groups view crypto through a zero-sum game lens. They think that if crypto wins, banks must lose. However, individual banks are actually starting to see crypto as an opportunity, not a threat. But their trade groups? They don’t buy into that narrative.

What’s interesting is the behind-the-scenes detail. These trade groups have already represented the industry in meetings with the crypto industry organized by the White House. After the Senate Banking Committee’s push for market structure legislation failed last month, they still maintained their position that the bill should block stablecoin rewards.

At last week’s meeting, the banking industry didn’t move from their demands. The next meeting is scheduled for Thursday morning. In the current discussion, it’s clearly evident that small and mid-sized banks are actually more concerned about deposit flight to large banks, not to stablecoin issuers. Meanwhile, large banks are becoming increasingly open to crypto. There are reports that some of the five largest banks in the world have already been using crypto-related infrastructure.

The most important fact to acknowledge is that regulated US stablecoins are now a reality. The banking industry needs to decide whether to view this as an opportunity or a threat. If they continue with the old mindset, negotiations will keep stalling. But if there’s a willingness to compromise, there may be a way forward.