Crypto market bill discussions between crypto firms and banks are set to continue next Tuesday. This comes as White House scheduled a meeting for the parties involved to reach a common ground.
Crypto Firms, Banks to Resume Crypto Market Bill Talks on Feb. 10
According to Eleanor Terrett, the White House is set to host crypto firms and banks on February 10. This is in hopes to broker a deal on the current issues regarding stablecoins.
This comes after the parties involved previously met at the White House on Monday. The closed-door meeting saw representatives from the crypto and financial sectors come together in an attempt to come to an agreement regarding the stalled crypto legislation.
Both parties left the meeting, characterizing it as productive, though major differences preventing the crypto market bill’s progress remained unsolved. The White House crypto council has been pushing for the matter to be settled. This highlights the urgency of Trump’s administration for clearer rules on crypto in the country.
Notably, key industry leaders in crypto have been reportedly proposing new changes in the CLARITY Act in order to move the legislation forward. However, there has not been a positive response from the banking faction as they seem not to be willing to shift grounds.
This back and forth comes as the crypto market in general remains in a downturn. Bitcoin recently crashed as low as $60,000 trigerring a market-wide crash. The passage of the crypto market bill could potentially lift sentiment among investors.
Why is the Crypto Regulation Stalling?
The crypto legislation is being held up due to a debate between the two industries on the interest or other rewards paid on stablecoins. The banking associations have been pushing for language in the bill stopping the practice.
In their defense, these crypto companies say that giving rewards, such as paying interest, is very important in attracting new customers. They also said that forbidding them from paying such rewards would be anti-competitive.
Banks have expressed concern that the new competition may cause them to lose their deposits. They stated that this is the main source of funds for most institutions. Meanwhile, Senate Ag. Committee’s Boozmand said he feels strongly that an agreement would be reached on the crypto market bill.
Monday’s meeting held in the White House aimed to develop a consensus on the bill after the Senate Banking Committee postponed the vote last month in the face of mounting objections from all sides and concerns that the bill lacked enough support to move forward in the full Senate.
Source: https://coingape.com/crypto-market-bill-nears-key-phase-as-white-house-sets-feb-10-meeting-to-reach-deal/
