Officials in US President Donald Trump’s administration are set to meet with banking and cryptocurrency executives as talks resume on the stalled CLARITY Act, according to a Reuters report.
The meeting, hosted by the White House’s crypto council, will focus on disagreements over whether interest or rewards should be allowed on dollar-pegged stablecoins.
The CLARITY Act, which aims to define crypto market structure and divide oversight between the Securities and Exchange Commission and the Commodity Futures Trading Commission, has been delayed for months in the Senate.
Progress has been blocked by a dispute between banks and crypto firms over stablecoin yield, with banks warning that rewards could drain deposits from the financial system.
On Jan. 15, Bank of America chief executive Brian Moynihan said interest-bearing stablecoins could pull up to $6 trillion out of US banks, threatening lending capacity.
Crypto companies argue banks are using legislation to stifle competition, with Coinbase chief executive Brian Armstrong previously saying the exchange would “rather have no bill than a bad bill”.
Despite divisions, several industry groups including Coin Center, a16z, Kraken and Ripple continue to support the Senate’s version of the bill as negotiations restart.