Yesterday, the White House hosted an important meeting concerning cryptocurrencies. However, the stablecoin meeting, which took place at the White House late yesterday evening, ended without a conclusion.
Representatives from leading US banks met with figures from the cryptocurrency sector. Following instructions from President Donald Trump’s crypto advisors, they discussed finding common ground regarding the Senate’s market structure bill.
However, discussions at the meeting stalled over the issue of stablecoin yields.
The fact that the banking sector, in particular, was unwilling to compromise on stablecoin interest rates and demanded a complete ban on stablecoin yields, brought the negotiations to a standstill.
At this point, it has been reported that the banking sector is proposing a strict stance that would completely ban interest payments.
According to a document shared by the White House, exceptions must be “extremely limited” so as not to weaken the principle of the ban. This stance is even stricter than the recent market structure bill that allowed yield payments for certain stablecoin activities.
The failure of the second meeting on stablecoin yields jeopardized the short-term future of the Clarity Act, the largest cryptocurrency reform bill in the US, and also triggered a drop in Bitcoin. BTC fell to around $67,000 in the morning hours.
Ripple made a statement!
Stuart Alderoty, Ripple’s Chief Legal Officer (CLO), who was among those attending the meeting, described the recent discussions at the White House regarding stablecoin revenue as productive.
In his post, Alderoty stated that a consensus was forming and that bipartisan support for the proposed cryptocurrency market structure continued.
He stressed the importance of acting while there is opportunity to achieve tangible results for consumers and the U.S.
*This is not investment advice.