Crypto firms and banks failed to reach a compromise on stablecoin yields at a White House meeting as negotiations continue over a Senate bill to regulate US crypto market structure.
Participants said advisers to Donald Trump directed both sides to find practical compromises on stablecoin yield language by the end of the month to keep the legislation moving.
Despite no immediate breakthrough, one attendee described the talks as “exactly the kind of progress needed,” even as banking representatives stopped short of offering concessions.
The meeting, led by Trump’s crypto adviser Patrick Witt, focused on whether stablecoins should be allowed to offer yield or rewards, a point bankers argue could threaten traditional deposit-based lending.
“We must ensure that any legislation supports local lending to families and small businesses and protects the safety and soundness of our financial system,”
Said bank groups, including the American Bankers Association.
Crypto advocates, including representatives from Coinbase, Circle and Ripple, warned that further delays reduce the chances of the bill passing the Senate this year.
The legislation has already cleared one Senate committee but still faces hurdles in the Senate Banking Committee amid Democratic demands for tougher ethics, governance and illicit-finance safeguards.