Senator Tim Scott (R-SC) on Wednesday said bipartisan momentum is building behind U.S. crypto market structure legislation, positioning America to become the world's leading center for digital assets.

'Crypto Capital' Of The World

In a Fox Business interview, Scott said the Senate's Clarity Act is advancing after what he described as a constructive White House meeting involving banks and crypto industry leaders.

He expressed confidence the bill will pass, though negotiations continue around a key sticking point: whether crypto firms, particularly stablecoin issuers, should be allowed to offer rewards or yield.

Scott said both parties remain engaged and committed to resolving differences, emphasizing that the broader objective is clear.

"The goal," according to Scott, is to make the U.S. the global crypto capital while protecting consumers and preserving financial stability.

Clear Line Between Crypto Firms And Banks

Scott argued that permitting rewards is important for innovation and consumer access but stressed that crypto firms must not present themselves as banks.

He drew a firm distinction between the two models, noting that banks operate on fractional reserves backed by FDIC insurance, while stablecoins are typically backed 1:1 by reserves.

Because of that difference, Scott said concerns comparing stablecoins to bank deposits are "apples and oranges."

He also downplayed fears of deposit flight from traditional banks, pointing out that consumers already move funds into higher-yielding alternatives such as money market funds.

Scott framed the debate as one of competition rather than systemic risk, arguing that increased competition would ultimately benefit consumers through better rates, lower costs, and continued financial stability.