The White House is preparing to discuss the issue of interest in stablecoin regulations with banks and cryptocurrency companies at the meeting to be held on February 10. The meeting is seen as part of the process of establishing a clear and comprehensive legal framework for the US crypto market.
Concerns at the Center of the Interest-bearing Stablecoin Debate
Stablecoins are known as digital assets with a fixed value and are gaining increasing attention in the financial industry. Recently, there has been controversy about whether stablecoin issuers can offer interest or returns to their users.
Traditional banks argue that if stablecoins start offering interest, it could cause customers to shift their deposits to digital assets, which could put pressure on the banking system. Treasury officials, as well as banks, argue that only regulated institutions should offer interest-bearing products. Bank representatives on the subject
It is reported that he stated that only regulated institutions can offer interest-based products, thus protecting both consumers and the economy in general.
Cryptocurrency companies, on the other hand, argue that current regulations are not up-to-date enough and point out that user rewards have become standard in the digital finance world. In this context, it is emphasized that banning rewards could hinder competition and harm financial innovation.
Seeking Compromise Between the Parties
At a recent closed session, the government and industry representatives failed to reach full agreement on key policy issues. Although those who participated in the talks described the process as “positive”, it is reported that significant differences of opinion continue.
Journalist Eleanor Terrett states that the agenda of the new meeting will be to resolve uncertain points, especially regarding the stablecoin interest.
It is stated that the main goal in achieving comprehensive regulations is to close the political gaps between banks and digital asset companies.
The industry side, on the other hand, is trying to ensure that the law is more balanced in practice by requesting that certain regulations be changed in the draft law. However, representatives in the banking field have not yet responded positively to these changes.
Meeting Participants and Expectations
In addition to government officials, bank representatives and organizations from the crypto industry were also invited to the meeting to be held on February 10. While previous meetings included mainly participation from policy makers and the government, now the two wings of the sector will gather around the same table.
Providing clarity in regulations is considered important for the confidence of investors and institutions due to the fluctuations observed in the crypto market. It is considered that with a possible agreement reached at the meeting, long-delayed legal changes regarding crypto assets could be accelerated.
