Banking Voice in Crypto Regulation
The White House recently hosted a summit on digital assets, aiming to advance legislation around crypto infrastructure. Invitations went out to both crypto firms and traditional banking representatives. The American Bankers Association (ABA) responded with an official statement.
The ABA thanked the Trump administration for facilitating this constructive dialogue and noted that the summit acknowledged the banking sector’s concerns regarding crypto legislation.
- Legislation must support local credit supply
- Protect lending to households and SMEs
- Maintain the stability of the financial system
Call for Regulatory Clarity
In addition, the ABA urged lawmakers to close regulatory loopholes that could allow crypto platforms to offer interest or returns on stablecoins, calling it a key point of contention between banks and crypto firms.
Banks fear such practices could accelerate deposit outflows or force them to raise rates to remain competitive.
Striking a Balance
It is reported that the White House plans to continue negotiations to find a middle ground between fostering innovation and safeguarding the traditional financial system.