White House to lead talks on digital asset legislation with banks and crypto firms

The White House is set to convene discussions next week involving executives from major banks and cryptocurrency companies to determine the future direction of US digital asset legislation. The central issue in these talks, particularly concerning the Clarity Act, is how the legislation will treat interest or other rewards offered on customer holdings of dollar-pegged stablecoins. Crypto firms contend that offering yield is vital for user engagement and competitiveness, while banks warn that allowing stablecoin yield could destabilize the financial system by drawing significant deposits—potentially up to $500 billion by 2028—from insured lenders. This dispute arises from a previous stablecoin framework that prohibited issuers from paying interest but left ambiguity regarding rewards offered by third parties like exchanges, making this a key point of contention as broader crypto legislation is finalized.

(Source：Crypto Briefing)