Inside the White House talks between crypto firms and banks on stablecoin rewards

The White House convened a meeting, led by Patrick Witt of the President’s Council of Advisors for Digital Assets, between cryptocurrency advocates (including Coinbase and trade groups) and banking organizations to negotiate the contentious issue of stablecoin rewards. This dispute is a major sticking point preventing the advancement of bipartisan digital asset market structure legislation in the Senate. Crypto firms argue that third parties like Coinbase should be allowed to offer rewards, while banks fear this will draw deposits away, potentially harming community banks. Banks criticized the existing GENIUS stablecoin law but crypto firms accuse them of trying to stifle competition. Sources indicated that while bank representation was rigid, all sides identified pain points, and there is an identified path toward a resolution by the end of February, though no final agreement was reached.

(Source：The Block)