- The White House huddled with crypto and banking lobbyists again, narrowing talks to stablecoin reward payments as a key market structure bill is debated.
- The administration’s key proposal would restrict third-party stablecoin rewards to transaction activity only, excluding rewards on idle balances.
- Banking representatives cite competitive pressure as a primary concern, rather than fears of mass deposit flight from the banking system.
- This was the third such meeting in 16 days, showing intensified efforts to forge a compromise on crypto legislation.
- No final agreement was reached, but participants described the talks as constructive and a step forward.
In a pivotal White House meeting on Thursday, crypto industry representatives from Coinbase and Ripple and major bank lobbyists continued their high-stakes negotiations over stablecoin provisions in a pending crypto market structure bill. Consequently, this third meeting in just 16 days signals the administration’s push to broker a deal as the Senate seeks to advance legislation.
No final agreement was reached, but participants called the discussions constructive. Ripple’s chief legal officer, Stuart Alderoty, posted that they “rolled up our sleeves,” while Coinbase’s Paul Grewal said the tone was cooperative. Meanwhile, the Blockchain Association’s Summer Mersinger said it was a step forward.
The talks were reportedly driven by White House crypto adviser Patrick Witt, who pushed a specific trade-off. His proposal would allow third parties to offer stablecoin rewards tied to transactions, not customer balances. However, “Earning yield on idle balances, a key crypto industry goal, is effectively off the table,” according to journalist Eleanor Terrett.
Banking groups fear stablecoin rewards will create competitive pressure, though concerns over deposit flight may be secondary. Nevertheless, a U.S. Treasury estimate from April warned that mass stablecoin adoption could trigger $6.6 trillion in bank deposit outflows. The banking industry’s representatives, including the Bank Policy Institute and the American Bankers Association, have not publicly commented on the latest talks.
Discussions will continue as banks deliberate on the proposed compromise. This legislative effort, known as the CLARITY Act, passed the House in July but faces a stalled Senate process.
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