A person familiar with the negotiations said crypto industry negotiators were at the White House on Tuesday ready to discuss a legislative deal on stablecoin yields, but their banking counterparts weren’t yet prepared to compromise over the Senate’s bill for its crypto market structure.
A fight for the ability of stablecoins to provide rewards one of the chief headwinds is that it’s keeping the Senate Banking Committee from pushing the Digital Asset Market Clarity Act in its lobbying battle between Wall Street bankers and crypto insiders – remains an important part of what keeps the House Banker. But it’s a long-standing sticking point for months, and the banking side stood firm on banning the rewards activity and more, she said, even though White House insisted last week that both sides have ideas for compromising.
The Crypto team at the table was reportedly said to include executives from Coinbase, Ripple, a16z, the Crypto Council for Innovation and the Blockchain Association, according to people familiar with the plans. The White House sought to reduce the number of participants at last week’s most recent meeting, which had not made significant progress on the question of stablecoin rewards programs that are a key part of crypto platforms’ business models.
Despite the lack of major progress, crypto representatives struck a hopeful note in statements about the meeting.
Blockchain Association CEO Summer Mersinger, who was reportedly invited to the meeting, said ‘We’re encouraged by this progress because stakeholders are constructively engaged in solving outstanding issues.
After the meeting, CCI CEO Ji Kim said in a statement that his group “appreciates banking industry for their continued engagement” and added ‘The key work is still going on. He said ‘Although s are in the line, “
The meeting was followed by a statement from banking groups involved in the meeting, including the Bank Policy Institute and American Bankers Association, which did not specify what next steps on the legislation would follow.
During the meeting, we noted “A framework can and must embrace financial innovation without undermining safety and soundness; it does not put the bank deposits that fuel local lending and drive economic activity at risk,” said in the joint statement.
The banking panel must clear a bill by majority vote before the Senate can approve it. It already needs the backing of the legislation from the Senate Agriculture Committee, and a similar bill with the same name won voted in the House of Representatives last year. Nevertheless, bankers have raised concerns about stablecoin yields and rewards threatened deposits business at the heart of their industry.
But stablecoin yield wasn’t the only major sticking point, not just for . The effort has also called for a crackdown on deep crypto involvement from senior government officials, mostly due to President Donald Trump’s personal crypto interests, according to Senate Democratic negotiators. But the Democratic lawmakers have also called for stronger protections against crypto’s use in illicit finance and that commissioners including Democrats appointee-s, – are fully employed at the Commodity Futures Trading Commission before it can work on crypto regulations.
Despite Trump’s crypto adviser, Patrick Witt, who has said the negotiators will soon find common ground, he also told CoinDesk that the White House won’n’t support an effort to target the president. The meeting was said Tuesday to be headed by Witt as he did the one last week, and Witt is said to lead the meeting.
The Clarity Act has a number of practical problems beyond the policy disputes, such as the Senate’s continuing conflict with one of the last remaining budget issues funding for the Department of Homeland Security (which operates Immigration and Customs Enforcement (ICE)). While the Senate is always a tough place to find necessary floor time for moving bills and as close does the chamber get to the long breaks before midterm elections this year, the harder it is to have enough time to deal with if there’s.
Read More: Crypto industry, banks not yet close to stablecoin yield deal at White House meeting
UPDATE (February 10, 2025, 23:16 UTC): Adds comment from the bank lobbying groups.
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