Washington, DC is preparing for a momentous event that will shape America’s financial future. Tomorrow, February 10, the Trump administration convened leaders from the traditional banking industry and the emerging digital asset sector in hopes of forging a historic agreement.
The core objective is to resolve friction points in the regulatory framework, such as the ability of stablecoins to provide rewards and interest payments to users.
This second meeting was hosted by the White House. I promise you’ll become more alert.. Unlike the first meeting on Feb. 2, this one will include direct representatives from major banks, as well as influential groups such as the American Bankers Association (ABA) and the Independent Community Bankers Association (ICBA), according to people close to the plan.
On the digital asset ecosystem side, the presence of key bodies such as the Blockchain Association, the Digital Chamber of Commerce, and the Cryptocurrency Innovation Council is expected.
Some reports have indicated that invitations have been sent to major banks such as JPMorgan, Bank of America, Wells Fargo, PNC, Citi, and US Bank, but spokespeople have chosen to remain silent or declined to comment.
Banks and virtual currency companies negotiate agreement on stablecoins
Approval of the meeting came from Dan Speller, Executive Vice President of the Blockchain Association. he announced this format Perhaps you’re looking for a more focused discussion And there is an opportunity to move towards a concrete agreement by the end of the month, aimed at advancing the regulatory framework for the crypto asset market, which has been somewhat paralyzed by the lack of agreement between banks and stablecoin issuers.
The first meeting, held at the White House on February 2nd, already included leading companies such as Coinbase, Paxos, Kraken, Ripple, and Tether, as well as banking associations. As reported by CriptoNoticias: The meeting ended without a firm agreement.the depth of the differences between the two sides became clear.
The crux of the issue is whether stablecoins should have the ability to provide rewards or interest. This is because banks claim this practice diverts deposits from traditional accounts and could impact their ability to make community loans.
For example, ICBA estimates that an unregulated proliferation of high-yielding stablecoins could reduce loan volumes by up to $850 billion. In contrast, the crypto asset sector argues that rewards are a key incentive for user adoption and innovation in decentralized finance.
Given that there is still no consensus on this and other important points, the Senate Banking Committee has already postponed its own bill in January.
The outcome of these high-level negotiations therefore extends beyond the future of major segments of the digital asset market. it will define what the United States will become It will be possible to balance digital innovation and traditional financial systems.it’s a delicate balance that so far no outright ban on rewards has been proposed.