Stablecoins: Coinbase and banks clash at the White House over rewards

The White House becomes the scene of a political and economic standoff around stablecoins. Leaders in the crypto industry (including Coinbase and Ripple) are clashing with big banks on the sensitive issue of rewards offered on these digital assets.

Stablecoins under pressure: rewards and a war of influence

Gathered in Washington, representatives of the crypto market united to defend the use of paid stablecoins. On the other hand, traditional banks are warning of a direct threat to their financial system.

Indeed, the subject divides! THE yields offered by certain crypto exchanges rival those of traditional savings accounts, a red line for Wall Street.

Donald Trump's crypto advisor Patrick Witt demanded compromise by the end of the month. During this meeting at the White House, the bankers nevertheless refused to give in on yields. Which slows down negotiations.

THE banksrepresented by the American Bankers Association, argue that any regulations must preserve local credit and system stability. The giants of the crypto industry are asking for a clear framework, without hindering financial innovation.

Regulation and political games surrounding stablecoins

This bill aims to regulate the functioning of the crypto market, particularly stablecoins. It has already passed the House of Representatives and the Senate Agriculture Committee. The major obstacle remains: the Senate banking committee, the scene of the strongest divisions.

THE rewards associated with stablecoins crystallize tensions. Wall Street sees this as a systemic danger. The Republicans want to move forward while the Democrats set their conditions: more controls on illicit flows, a rebalancing at the CFTC, an ethical framework to prevent conflicts of interest, etc.

The meeting has brought together various actors such as Circle, Crypto.com, the Blockchain Association and the Digital Chamber. Negotiations continue behind closed doors. But without compromise on stablecoins and their yields, the legislative calendar could bog down.

Failure would also delay highly anticipated regulation of cryptocurrencies in the United States. This would slow down the expansion of this rapidly changing sector upstream.

The question of stablecoins is therefore no longer limited to a technical debate. It symbolizes the clash between two visions of finance. And behind the returns, it is the future of the crypto ecosystem which is being played out in the corridors of American power.