Banking Trades Statement on White House Crypto Market Structure Meeting

WASHINGTON - Following today's meeting at the White House on crypto market structure legislation, the Consumer Bankers Association, American Bankers Association, Bank Policy Institute, Financial Services Forum, and Independent Community Bankers of America issued the following joint statement:

"We want to thank the Administration for hosting today's constructive conversation and for recognizing the importance of the banking industry's perspective on market structure legislation. As we shared in the meeting, we must ensure that any legislation supports the local lending to families and small businesses that drives economic growth and protects the safety and soundness of our financial system. Banks of all sizes will continue to work with lawmakers, the White House and other stakeholders to help develop thoughtful, effective policy around digital assets."

Additional Background

Below is a selection of some of the groups' recent advocacy and research on the stablecoin yield/interest issue:

• Joint Trades CEO Letter Urges Congress to Close Stablecoin Loophole
• ABA: Community Bank Leaders Urge Senate to Protect Local Lending from Stablecoin Risks
• Joint ABA and State Bankers Associations Letter to the Senate on Stablecoin Rewards
• BPI: Stablecoin Risks: Some Warning Bells
• BPI: The Risks from Allowing Stablecoins to Pay Interest
• CBA: ICYMI: New Research Examines Impact of Interest-Bearing Stablecoins on Banks' Ability to Lend
• ICBA and State Banking Associations: Protect Vital Role of Community Bank Deposits
• ICBA Analysis: Permitting Interest on Payment Stablecoin Holdings Would Reduce Community Bank Lending by $850 Billion