According to TechFlow TechFlow, on February 8th, crypto journalist Eleanor Terrett revealed that the White House will hold a new round of cryptocurrency meetings next Tuesday, focusing on stablecoin yields. This is the second in a series of meetings, still at the staff level, and will not invite corporate CEOs, but senior policymakers from several banks will attend for the first time.
Sources familiar with the matter said that major banks such as Bank of America, JPMorgan Chase, and Wells Fargo have received invitations, and Citibank, PNC Bank, and U.S. Bancorp may also participate; the banking representatives include the Banking Policy Institute, the American Bankers Association, and the Independent Community Bankers Association.
The report states that banks want to restrict crypto companies from paying interest to stablecoin holders, fearing that high-yield accounts will attract deposit outflows and affect loan funding. Crypto companies, on the other hand, believe this proposal will weaken competition and stifle innovation. Scott Bessant stated this week that deposit volatility is undesirable and he will strive to avoid stablecoin yield payments causing deposit instability.
This meeting is related to the advancement of the Cryptocurrency Market Structure Act (CLARITY Act). Patrick Witt, executive director of the White House Cryptocurrency Council, has urged all parties to reach a consensus by the end of this month.
