The White House will hold a second meeting on Tuesday afternoon aimed at pushing banks and crypto firms toward a deal on stablecoin yields, a key dispute blocking progress on the CLARITY Act and fueling tensions between banks and crypto firms.
The session follows an earlier closed-door gathering that ended without agreement on whether digital asset firms should be permitted to pay interest on stablecoins. Banks have resisted such measures, warning that yield-bearing stablecoins could trigger substantial deposit outflows from the traditional financial system.
Like the first meeting, the Tuesday talks will involve senior staff and trade groups rather than top executives, with fewer participants from each industry, according to Crypto in America. The session will focus on practical details for a possible compromise.
Negotiators will work to resolve tensions between banks’ concerns over deposit volatility and crypto firms’ efforts to offer interest-bearing stablecoins.
Both camps face pressure to deliver a compromise proposal by late February. Any progress could determine the fate of pending crypto legislation and shape future market rules.
Crypto firms are rolling out fresh proposals aimed at bridging differences with banks over stablecoins and keeping crypto regulation talks on track, Bloomberg reported last week. The plans would give community banks a larger stake in the stablecoin market, including custody of reserve funds and joint ventures to issue bank-backed digital currencies.