The American Bankers Association (ABA) has issued a statement on today’s White House Crypto meeting, which brought together crypto and legacy banking representatives in an attempt to reanimate crypto market infrastructure legislation.
While crypto firms quickly issued positive statements regarding the gathering, the ABA appears to be taking a more muted response.
While thanking the Trump Administration for hosting the “constructive conversation” that recognizes traditional banking participants’ concerns, the ABA was less positive on the progress.
To quote the group:
“As we shared in the meeting, we must ensure that any legislation supports the local lending to families and small businesses that drives economic growth and protects the safety and soundness of our financial system… Banks of all sizes will continue to work with lawmakers, the White House, and other stakeholders to help develop thoughtful, effective policy around digital assets.”
The ABA demanded that Senators close a loophole that would enable crypto firms to provide interest or yield on payment stablecoins held by consumers. This is the largest hurdle facing the two sides, as traditional banks fear competition and the potential decline in deposits, or the need to compete and pay higher deposit rates to consumers.
Expectations are for additional meetings as the White House seeks a compromise that enables digital asset innovation.
In reality, the writing is on the wall that traditional banks need to embrace change and compete with digital asset firms on a level playing field, but change is hard.
