White House Pushes Banks and Crypto Leaders to Finalize Stablecoin Rules

Highlights:

• The White House brought bankers and crypto leaders together to discuss stablecoin rules.
• Both sides aim to finalize yield agreements before March to move the market bill forward.
• Banks stay cautious, while crypto firms push for clear rules to support innovation.

The White House recently held a high-level meeting to bridge gaps between Wall Street bankers and crypto industry leaders. It took place in the Diplomatic Reception Room and lasted over two hours. Crypto insiders, who outnumbered bankers, expressed frustration over what they called unnecessary delays from banks in agreeing on stablecoin yield rules.

Sources familiar with the private meeting said the administration set clear goals for both sides. The main target is to finalize an agreement on stablecoin yields before March. This deadline is seen as crucial for moving the broader crypto market structure bill forward. Meanwhile, the crypto sector is closely watching the US Senate. Industry insiders are waiting for a vote on the full market structure bill. They warned that further delays in the Senate could reduce the chances of the legislation passing this year.

Patrick Witt Leads Talks on Stablecoin Yields Rules, Banks Commit to Cooperation

Patrick Witt, Executive Director of the President’s Council of Advisors on Digital Assets, led the meeting. The main topic was whether stablecoins should be allowed to give yields and rewards. Policy experts from both banks and crypto firms joined, pointing out the bill’s complex language and the need for changes.

Sources said the White House asked participants to continue talks in smaller groups to refine the wording of the legislation. Banking representatives may still need approval from their trade associations before agreeing on any strategy. 

After the meeting, banking representatives said they are willing to work on legislation that benefits both sides. “We must ensure that any legislation supports the local lending to families and small businesses that drives economic growth,” they said. “Banks of all sizes will continue to work with lawmakers, the White House and other stakeholders to help develop thoughtful, effective policy around digital assets.”

Crypto Leaders Push for Clear Rules After White House Meeting

Cody Carbone, who leads the Digital Chamber advocating for crypto policy in Washington, called the White House meeting an important step forward. He noted that no immediate agreement on yields was reached, but said the discussion itself showed progress.

Carbone said, Carbone stated, “We can’t afford to do nothing. We are ready to get to work and ensure that new laws do not harm innovators or consumers who view digital assets as a key part of their financial future.” His comments highlight the increasing impatience of crypto’s supporters, who are eager to have rules in place that can support their industry’s growth. The meeting also demonstrated the tension that exists between banks and the crypto industry, which continues to evolve rapidly while banks are taking a more cautious approach.