A stablecoin meeting held at the White House in early February, attended by prominent figures from the cryptocurrency and banking sectors, ended without a conclusion.
Following this, representatives from the crypto and banking sectors met for a third time to find a solution.
According to US cryptocurrency journalist Eleanor Terrett, the third meeting was different from the others. Terrett noted that fewer people attended this meeting and that, unlike the others, it was led by the White House.
“According to sources at the meeting, today’s stablecoin meeting was smaller than last week’s and included representatives from Coinbase, Ripple, and a16z, as well as trade groups Blockchain Association and Crypt Council. No representatives from individual banks attended.”
Sources speaking to Coindesk indicated that the White House supports implementing “limited compensation” for stablecoins in an effort to appease opposition from the banking sector.
Accordingly, the White House supports limited stablecoin rewards, and according to two people close to the discussions, if the banking sector approves, this practice will be included in the next draft of the CLARITY cryptocurrency market structure bill.
The White House plans to release a revised draft reflecting these changes soon.
The compromise proposed by the White House was to “limit interest payments on simple stablecoin assets, similar to bank deposits, but allow rewards based on specific activities or transactions.”
Furthermore, the White House has proposed effectively banning the payment of interest on balances held in cryptocurrency wallets. The draft states that paying interest on idle stablecoin balances would be prohibited, and violations would be subject to a fine of $500,000 per day.
The SEC, the Treasury Department, and the CFTC will be given enforcement authority.
Coinbase’s chief legal officer, Paul Grewal, who attended the meeting, said that progress had been made but no agreement had yet been reached, adding that the discussions were constructive and the atmosphere was cooperative.
*This is not investment advice.