Representatives from Coinbase, major crypto trade groups and banking organizations are set to convene at the White House next week for a summit on one of the industry’s most contentious issues: how stablecoin rewards should be treated.
The summit, to be hosted by the White House's crypto council, was first reported this week by Reuters.
The early-afternoon session on Monday is expected to include representatives from Coinbase, Ripple, Kraken, The Digital Chamber, the Crypto Council for Innovation and the Blockchain Association, according to sources familiar with the plans who spoke to The Block on Friday. Representatives from the American Bankers Association are also expected to attend, the sources said. The ABA and other bank trade organizations did not immediately respond to requests for comment.
The Block also reached out to USDC stablecoin issuer Circle, which one source said may attend, but did not immediately receive a response.
The White House likewise did not immediately respond to a request for comment.
Stablecoin pain point
The issue around how to treat stablecoin rewards has become a major point of contention as lawmakers work to pass crypto legislation that would regulate the industry as a whole, and divvy up authority between the Commodity Futures Trading Commission and the Securities and Exchange Commission.
Banking trade groups have pushed back against the GENIUS Act, a stablecoin framework that cleared Congress over the summer.
While the new law prohibits stablecoin issuers from paying interest directly to holders, it leaves room for third-party platforms, including exchanges like Coinbase, to offer rewards. Bank groups say that allowing firms to offer yield could siphon away deposits, while Coinbase has pushed back and said banks are trying to stifle competition.
Tensions seemingly came to a head at the World Economic Forum in Davos, Switzerland, last week when JPMorgan Chase's Jamie Dimon pointed a finger at Coinbase CEO Brian Armstrong and said he was "full of sh**," The Wall Street Journal reported on Thursday. Other bank executives also gave Armstrong the cold shoulder while in Switzerland, according to WSJ reporters.
This week, the Senate Agriculture Committee advanced its legislation to regulate the crypto industry, though it did not muster Democratic support. The Senate Banking Committee still needs to hold its hearing to advance its version of a bill after it was postponed earlier this month following Coinbase's move to pull support.
One version would eventually need to head to the Senate floor, and after that, will have to be reconciled with what the House passed over the summer with Clarity before a final bill heads to the president's desk for a signature.
