coindesk.com
The White House will meet with representatives from crypto companies and traditional banks in the coming days to work on stablecoin yield concerns in the crypto market structure bill, according to individuals familiar with the matter.
The legislation, which was delayed earlier this month, has hit resistance over how it proposes regulating stablecoin rewards — particularly provisions that could limit interest-bearing or reward-linked features tied to the dollar-pegged tokens. Banks have opposed letting stablecoin issuers or their exchange partners offer rewards, warning it risks deposit flight. The crypto industry has said offering these rewards will benefit end users.
Reuters first reported that the meeting is set to happen in a Wednesday article.
The meeting is being convened by the White House’s internal crypto policy council, a group that includes officials from the National Economic Council, Treasury and other agencies, Reuters said. The goal is to gather feedback directly from market participants on how to resolve sticking points in the bill.
At the center of the dispute is how stablecoin rewards — such as yield passed on to users from reserve assets — should be treated under the law. Wall Street bankers have pushed back hard against crypto yield products, persuading several lawmakers from both parties that these offerings pose a competitive threat to the traditional banking system.