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A high-level White House meeting between major banks and crypto leaders over stablecoin reward rules ended without a final agreement. However, people familiar with the talks said progress was made as a March 1 deadline approaches.
According to Fox journalist Eleanor Terrett, attendees from both sides described the meeting as “productive.” They discussed possible terms more seriously than in previous sessions. The meeting was led by Patrick Witt, Executive Director of the President’s Crypto Council, and included staff from the Senate Banking Committee. It was a more focused and concise follow-up to earlier discussions.
Banks Show Slight Shift, Crypto Seeks More Freedom
Major banks, including Goldman Sachs, JPMorgan, Bank of America, Wells Fargo, Citi, PNC, and U.S. Bank, brought a written document outlining what they would and would not accept regarding stablecoin rewards.
Journalist Sander Lutz reported that banking representatives shared a handout listing their “red lines.” These points mainly oppose allowing non-bank crypto companies to offer interest-like rewards on stablecoins without strict rules.
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One source noted a small but meaningful change in the banks’ position. They included wording that mentioned “any proposed exemption,” suggesting they may be open to limited exceptions. In earlier talks, banks had rejected the idea of allowing such flexibility.
The primary disagreement persists over what stablecoin companies should be permitted to do. Crypto firms want broader rules so they can offer competitive rewards and build new products. Banks want tighter limits to ensure stablecoins do not act like traditional bank deposits without proper oversight.
Ripple’s Chief Legal Officer, Stuart Alderoty, expressed optimism, saying, “Compromise is in the air.”
Key Participants
Crypto representatives included Paul Grewal (Coinbase), Miles Jennings (a16z), Stuart Alderoty (Ripple), Josh Rosner (Paxos), Summer Mersinger (Blockchain Association), and Ji Kim (Crypto Council). Trade groups such as the American Bankers Association and the Bank Policy Institute also took part.
What’s Next
More discussions are expected in the coming days. It is not yet clear whether another large meeting will take place before the end of the month. The White House is urging both sides to reach an agreement before the March 1 deadline.
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FAQs
The meeting between banks and crypto leaders made progress but reached no final deal. Both sides called it productive, with banks showing a slight shift in their negotiating position as the March 1 deadline nears.
Major banks want strict rules to prevent crypto firms from offering interest-like rewards on stablecoins without oversight, ensuring they don’t function like unregulated bank deposits.
Key attendees included execs from Coinbase, Ripple, a16z, and Paxos, plus major banks like JPMorgan and Goldman Sachs, and staff from the Senate Banking Committee.
Yes. The White House is pushing both sides to reach a compromise before the fast-approaching March 1 deadline, with more discussions expected in the coming days.