May 8 (Reuters) - U.S. senators are set ⁠to consider long-awaited legislation that would create a regulatory framework for cryptocurrency next week, potentially ending a deadlock ⁠over the bill that pitted crypto companies against U.S. banks.

The bill, dubbed the Clarity Act, would, if signed ‌into law, clarify financial regulators' jurisdiction over the burgeoning sector, potentially boosting digital asset adoption.

U.S. Senator Tim Scott, chairman of the Senate Banking Committee, said on Friday the panel would hold an executive session on May 14 at 10:30 a.m. (1430 GMT) in the Dirksen Senate Office Building in Washington, D.C.

The crypto industry ​has been pushing for the legislation, saying it is existential to the future ⁠of digital assets in the U.S. and necessary to ⁠fix core, longstanding problems for crypto companies. Among other things, the legislation would define when crypto tokens are securities, commodities or ⁠otherwise, ‌giving the industry legal clarity.

The bill also includes a provision aimed at settling a heated dispute between crypto companies and the banking industry. Under the compromise brokered by Republican Senator Thom Tillis and Democratic Senator Angela Alsobrooks, customer rewards ⁠on idle holdings of dollar-backed crypto tokens known as stablecoins would be prohibited, ​given their resemblance to bank deposits.