A White House meeting convened to address a prolonged stalemate between major US banks and cryptocurrency firms concluded without reaching an agreement.This outcome underscores the deep industry divisions that threaten the advancement of significant digital-asset legislation in the United States.
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finance.yahoo.comthestar.com.myThe closed-door session, organized by the White House's crypto council, brought together representatives from both the banking and crypto industries.Participants included trade organizations such as the American Bankers Association, the Independent Community Bankers of America, the Blockchain Association, and The Digital Chamber.Both sides described the meeting as constructive, yet fundamental disagreements persisted, preventing progress on the proposed legislation.
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finance.yahoo.comthestar.com.myCentral to the conflict is the treatment of interest and rewards associated with stablecoins.Banks have advocated for prohibitions on these practices, arguing that such rewards could lead to an exodus of deposits from insured lenders, thereby threatening financial stability.On the other hand, crypto companies assert that offering incentives like interest is essential for attracting new customers and that banning these practices would be anti-competitive.
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finance.yahoo.comthestar.com.myThe meeting aimed to find a compromise after the Senate Banking Committee postponed a markup of the legislation last month amid rising objections from both sectors.There were concerns that the bill lacked sufficient support to move forward to the full Senate, which has compounded the urgency for resolution.While the meeting did not yield an agreement, sources indicated that further discussions at the White House are anticipated as both sides continue to seek a resolution to the impasse .
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finance.yahoo.comThe legislation in question, known as the Clarity Act, seeks to establish federal rules governing digital assets.Advocates from the crypto industry have been lobbying for years, claiming that existing regulations are inadequate for addressing the complexities of digital currencies.They argue that legislative clarity is vital for the industry to operate with legal certainty in the US The House of Representatives had previously passed its version of the bill in July, further emphasizing the need for bipartisan agreement on the matter.
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thestar.com.myAs the debate continues, the White House remains engaged in discussions aimed at advancing President Trump's agenda of securing American leadership in emerging technologies, including cryptocurrency.White House spokesman Kush Desai highlighted the administration's commitment to fostering productive conversations to further this goal.
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thestar.com.myDespite the challenges ahead, both banking and cryptocurrency representatives remain hopeful that ongoing discussions could ultimately lead to a compromise.The complex dynamics surrounding stablecoin regulations illustrate the broader tensions between traditional finance and emerging digital asset markets, which continue to evolve rapidly in the US and around the world.As the situation develops, stakeholders from both industries will be watching closely for any signs of progress that could signal a breakthrough in the legislative process.
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finance.yahoo.comthestar.com.myIn conclusion, the failure to reach an agreement during the recent White House meeting reflects the ongoing complexities of crypto legislation in the US As discussions are expected to continue, the outcomes will likely shape the future of digital assets and their regulation in the country.
