Lates News

Journalist Eleanor Terrett disclosed details of next Tuesday's encrypted White House meeting. This meeting is the second round of a series of meetings and will still be at the staff level; chief executive officers of various companies will not be invited, but senior policy personnel from various banks will attend. Sources revealed that some large banks, including Bank of America, JPMorgan Chase, and Wells Fargo, have already received invitations, and PNC Bank, Citigroup, and US Bancorp may also be included. Banking industry representatives include the Bank Policy Research Institute, the American Bankers Association, and the Independent Community Bankers Association of the United States, but it is expected that the number of representatives sent by each party will decrease. The current situation is that banks hope to limit stablecoin interest provided by cryptocurrency companies, believing that it will threaten their own business. They are concerned that a large influx of funds into high-yield cryptocurrency accounts will cause a shortage of loan funds and trigger wider financial turmoil. Cryptocurrency companies, on the other hand, believe that banks' actions are aimed at disrupting the market competition environment, maintaining their own regulatory barriers, and hindering innovation. Treasury Secretary Scott Besent seemed to acknowledge the banks' concerns on Thursday, stating, "I have always been a supporter of these small banks, and deposit volatility is very undesirable. We will continue to make efforts to ensure that stablecoin interest payments do not cause deposit volatility." This meeting is about the future of the Cryptocurrency Market Structure Act (CLARITY Act). The issue of stablecoin interest rates has become a focal point of concern for the White House, even surpassing other controversial points such as ethics or decentralized finance. Patrick Witt, executive director of the White House Cryptocurrency Committee, urged all parties to reach an agreement by the end of this month.