As part of discussions surrounding the proposed Digital Asset Market Structure legislation, both sides returned to the negotiating table. Representatives from Coinbase, Ripple, Crypto Council for Innovation and Blockchain Association attended on behalf of the crypto industry, while banking giants such as Goldman Sachs, JPMorgan and Citi represented the traditional financial sector. Despite expectations, the meeting failed to produce meaningful progress.
At the center of the debate are yield and reward programs offered to stablecoin holders. Banks argue that such incentives could accelerate deposit outflows and create liquidity pressure within the traditional financial system. Crypto firms, on the other hand, warn that strict limitations would stifle innovation and undermine the sector’s competitiveness.
According to leaked documents, banking representatives are pushing for a blanket ban on all financial and non-financial rewards linked to stablecoin holdings. The current draft legislation prohibits interest on passive holdings but leaves room for certain activity-based incentives. With two White House meetings yielding no breakthrough, observers suggest the process may return to the Senate Banking Committee. While advisers to President Donald Trump remain optimistic, the regulatory battle over digital assets appears far from resolved.
