The White House Met with Giants of the Cryptocurrency and Banking Sectors! Here’s What Was Discussed in the Critical Meeting

An important meeting took place at the White House yesterday. On February 2nd, the White House brought together banking and cryptocurrency industry executives to discuss the CLARITY Act, a bill regulating the cryptocurrency market.

Coinbase, along with representatives from major cryptocurrency trading groups and banking institutions, met at the White House to discuss how stablecoin yields/rewards should be handled and whether third parties should be allowed to offer these rewards.

The meeting was chaired by Patrick Witt, from the President’s Digital Assets Advisory Council.

According to the information released, the White House instructed banks and cryptocurrency companies to make progress and reach agreements regarding stablecoin yields by February.

According to CoinDesk, the banking sector reportedly did not present any compromise proposals during the meeting.

A source present at the White House meeting reportedly said that the bank representatives’ approach was rigid and that they might need approval from their members before taking a step in the negotiations.

Whether or not to allow interest or rewards on stablecoins is a major point of contention and a primary cause of the deadlock in the bill’s discussions.

While banks argue that offering returns through platforms could lead to deposit outflows and financial instability, the cryptocurrency sector claims that even blocking third-party rewards constitutes excessive regulation.

The bill passed the House of Representatives and was also approved by the Senate Agriculture Committee, but discussions stalled before a vote in the Senate Banking Committee.

Although no consensus has yet been reached on stablecoin yields, Digital Chamber head Cody Carbone described the meeting as “exactly the kind of progress needed to address one of the biggest issues hindering the next steps in market structure legislation.”

Representatives from Coinbase, Circle, Ripple, Crypto.com, and the Crypto Innovation Council also attended the meeting from the cryptocurrency front.

*This is not investment advice.