American Bankers Association Responds to White House Crypto Meeting: Related Legislation Must Support Local Credit

Odaily News The American Bankers Association (ABA) issued a statement regarding the crypto industry meeting held at the White House that day. The meeting aimed to advance the legislative process related to crypto market infrastructure and invited representatives from both crypto businesses and traditional banking to participate.

In its statement, the ABA thanked the Trump administration for facilitating this "constructive dialogue" and noted that the meeting acknowledged the traditional banking sector's concerns regarding digital asset legislation. However, the ABA also emphasized that any related legislation must support local credit supply for households and small and medium-sized enterprises to maintain the safety and soundness of the financial system.

Furthermore, the ABA called on Senators to close regulatory loopholes that could potentially allow crypto companies to pay interest or yields on stablecoins to consumers, viewing this issue as one of the core disagreements between traditional banks and the crypto industry. The banking sector is concerned that such arrangements could exacerbate deposit outflows or force banks to raise deposit rates to compete. Reports indicate that the White House is expected to continue promoting follow-up consultations to seek a compromise between supporting digital asset innovation and maintaining the traditional financial system. (Crowdfund Insider)