According to people familiar with the matter, the White House will meet with representatives of cryptocurrency companies and traditional banks in the coming days to discuss the issue of stablecoin yields in the Cryptocurrency Market Structure Act.
The legislation, which was delayed earlier this month, has run into headwinds over how stablecoin rewards will be regulated, particularly provisions that could limit interest-bearing or reward-related features associated with U.S. dollar-pegged tokens. Banks oppose allowing stablecoin issuers or their exchange partners to offer incentives, warning that this could lead to an exodus of deposits. The crypto industry says that offering these rewards will benefit end users.
Reuters first reported that the meeting would take place in an article on Wednesday.
Reuters stated that the meeting was convened by the White House’s internal cryptocurrency policy committee, which includes officials from the National Economic Council, the Treasury Department and other agencies. The goal is to gather feedback directly from market participants on how to address sticking points in the bill.
At the heart of the dispute is how the law should treat stablecoin rewards (such as earnings passed on to users from reserve assets). Wall Street bankers have fiercely opposed crypto-yield products, convincing several lawmakers from both parties that they pose a competitive threat to the traditional banking system.
