Overview
- Banking groups arrived with a written set of “prohibition principles” seeking a blanket ban on any consideration paid to payment stablecoin holders, paired with enforcement tools and a call for a regulatory study.
- Crypto representatives rejected a universal ban and argued for broader definitions of permissible, usage-based rewards, with Ripple’s legal chief saying “compromise is in the air.”
- Participants said a narrow shift occurred as banks agreed to consider tightly limited exemptions for transaction‑based rewards after previously refusing to entertain carve‑outs.
- The smaller, staff‑level session was led by White House crypto adviser Patrick Witt and included major banks, Coinbase, Ripple, Paxos, a16z, industry trade groups, and Senate Banking Committee staff.
- The White House urged a compromise by March 1, and the Senate Banking Committee’s postponed markup of H.R. 3633 remains on hold as banks cite deposit‑flight risks in resisting yield features.