White House officials met Monday with crypto industry executives and bank trade associations in an effort to resolve a standoff over stablecoin reward provisions that derailed a landmark digital asset bill last month, raising questions about whether President Donald Trump's goal of making the U.S. the "crypto capital of the world" can survive competing industry interests and Democratic resistance.
What Happened: Crypto Bill Talks Resume
The meeting at the White House brought together executives from Coinbase, crypto trade groups, and banking associations seeking common ground on legislation that would establish rules for digital asset trading.
Last month, the Senate Banking Committee scrapped a planned vote on the bill hours after Coinbase withdrew its support over a proposed ban on most stablecoin rewards. Stablecoins are cryptocurrencies pegged to assets like the dollar and backed by reserves such as Treasuries.
Platforms including Coinbase pay yields on stablecoin holdings to attract investors.
Banks want the reward ban because the yields exceed typical savings account rates and could draw deposits away from traditional institutions. If crypto firms want to offer such yields, bank executives argue they should face bank-like regulations.
"Over the course of the past few months, we have achieved breakthroughs on several seemingly intractable policy issues. I am confident we will be able to resolve this one too," Patrick Witt, executive director of the President's Council of Advisors for Digital Assets, said.
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Why It Matters: Political Obstacles Loom
The legislation faces significant hurdles beyond the crypto-bank divide.
The November midterm elections will compress the congressional calendar, and many analysts expect Democrats to retake the House, giving them leverage to delay action. The Senate Agriculture Committee advanced companion crypto legislation last week without Democratic support, which would doom the bill in a full Senate vote where 60 votes are needed to overcome a filibuster.
Trump's own crypto business dealings may make Democratic cooperation impossible.
The Wall Street Journal reported over the weekend that the Trump family secretly sold 49% of crypto firm World Liberty Financial to an Abu Dhabi royal before the inauguration, prompting Democratic outcry and calls for prohibitions on Trump family crypto profits.
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