White House Meeting on Stablecoin Yields
A recent meeting hosted by the White House to discuss the controversial topic of stablecoin yields and rewards concluded without reaching an agreement. However, participants regarded the dialogue as more constructive than in prior sessions, as reported by journalist Eleanor Terrett.
Key Participants and Discussions
The assembly convened key figures from the banking sector, leaders in the cryptocurrency industry, and government policy advisors to explore the regulations governing whether stablecoin issuers should be permitted to offer yield or rewards. Despite the lack of a consensus, the talks advanced into finer points of disagreement.
Banking representatives presented a set of “prohibition principles”, clearly stating the boundaries they are unwilling to cross concerning stablecoin rewards. Within this framework, one significant development was the inclusion of language that would allow for the consideration of “any proposed exemption” concerning transaction-based rewards. This was seen by sources as a noteworthy compromise, as banks had previously shunned the notion of exemptions.
Disagreements on Permissible Activities
Much of the discussion revolved around what constitutes “permissible activities”, determining the account behaviors that would justify crypto companies in offering rewards. Companies within the crypto sector advocated for broader interpretations, while banks favored more restrictive terms to mitigate risk and regulatory liability.
Stuart Alderoty, Chief Legal Officer of Ripple, noted a sense of optimism coming from the discussions, suggesting that there are opportunities for compromise, despite ongoing disagreements.
Future Negotiations
This smaller gathering, led by Patrick Witt, the Executive Director of the President’s Crypto Council, featured participation from notable banking institutions such as Goldman Sachs, JPMorgan, and Bank of America, alongside key crypto representatives from companies including Coinbase, Ripple, and Paxos. Notably, staff members from the Senate Banking Committee were also present to observe the proceedings.
The White House has called on both parties to finalize an agreement by March 1, and further negotiations are anticipated in the lead-up to this deadline. It remains uncertain, however, if another large-scale meeting will take place prior to the target date.
