The second meeting between crypto industry reps and the banking sector at the White House in two weeks ended with no final agreement on the market structure bill. Both sides are stuck on stablecoin regulation.
However, Ripple Chief Legal Officer Stuart Alderoty described the talks as productive, noting the bipartisan momentum that must be used immediately.
The Essence of the Conflict
The stumbling block is yield payouts on stablecoins. Banking lobbyists claim that paying interest to coin holders on third-party platforms creates risks for traditional bank deposits and undermines the financial system. Previously, Coinbase pulled its support for the bill specifically because of provisions banning all forms of yield.
The Position of Banks
In materials distributed at the meeting, banking groups (ABA, BPI, ICBA) demanded a full legislative ban on stablecoin yields, citing financial system safety.
“Bankers came to the meeting not to discuss the text, but with a set of broad prohibitive principles,” said Blockchain Association representative Dan Spuller.
Market Reaction
BitGo CEO Mike Belshe urged an end to endless disputes over issues already discussed in previous initiatives (GENIUS Act). He believes approving market structure shouldn’t hinge on stablecoin yield debates, and lawmakers must stop delaying basic regulation.
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