Stablecoins: Coinbase and Banks Clash at the White House over Rewards

The White House becomes the stage for a political and economic showdown around stablecoins. Leaders of the crypto industry (including Coinbase and Ripple) oppose major banks on the sensitive issue of the rewards offered on these digital assets.

Stablecoins under pressure: rewards and a war of influence

Gathered in Washington, crypto market representatives united to defend the use of rewarded stablecoins. Opposing them, traditional banks warn of a direct threat to their financial system.

Indeed, the topic divides! The yields offered by some crypto exchanges rival those of traditional savings accounts, a red line for Wall Street.

Donald Trump’s crypto advisor Patrick Witt demanded compromises by the end of the month. At this White House meeting, bankers however refused to give in on yields. This is slowing negotiations.

The banks, represented by the American Bankers Association, argue that any regulation must preserve local credit and system stability. Crypto industry giants ask for a clear framework, without hindering financial innovation.

Regulation and political games around stablecoins

This bill aims to regulate the operation of the crypto market, notably stablecoins. It has already passed the House of Representatives and the Senate Agriculture Committee. The major hurdle remains: the Senate Banking Committee, the scene of the strongest divisions.

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

The meeting brought together various players 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 timeline could bog down.

A failure would also delay a much-anticipated regulation of cryptocurrencies in the United States. This would hinder the upstream expansion of this sector undergoing major changes.

The question of stablecoins is therefore no longer just a technical debate. It symbolizes the confrontation between two visions of finance. And behind the yields, it is the future of the crypto ecosystem that is at stake in the corridors of American power.