The crypto industry and traditional banking lobbies appear to be inching toward a historic compromise following weeks of gridlock that threatens the passage of the key U.S. digital asset legislation.
Stuart Alderoty, chief legal officer at Ripple, emerged from the closed-door session with a highly optimistic outlook on the progress made regarding the stalled CLARITY Act.
“We rolled up our sleeves and went through specific language today. Work will continue in the coming days. Let’s get this right and make the US the crypto capital of the world!”
The White House takes the wheel
Sources have reported that this third summit was smaller, tighter, and firmly led by the administration.
White House Crypto Council Executive Director Patrick Witt reportedly took charge of the room. Crypto firms and banking representatives were not allowed to steer the conversation with broad demands.
The attendee list included legal and policy heavyweights like Ripple’s Alderoty, Coinbase’s Paul Grewal, and a16z’s Miles Jennings, alongside advocacy groups like the Blockchain Association and the Crypto Council for Innovation.
Individual bank representatives were not part of the much-talked-about meeting. Traditional finance voices were represented by the American Bankers Association (ABA), the Bank Policy Institute, and the Independent Community Bankers of America (ICBA).
The concerns about high-yield stablecoins that have been expressed by the banking sector remain the biggest hurdle. The concern is that they could trigger a massive exodus of deposits from traditional savings accounts.
The crypto industry has reportedly made a major concession to address this fear: earning yield on simple “idle balances” is effectively off the table.
Negotiators are now focused on whether crypto firms can offer rewards linked to certain activities.