American Bankers Association responds to White House crypto meeting: Relevant legislation must support local lending

Odaily reported that the American Bankers Association (ABA) issued a statement regarding the crypto industry meeting held at the White House that day. The meeting aimed to advance legislation related to crypto market infrastructure and invited representatives from both crypto companies and the traditional banking industry to participate.

In its statement, the ABA thanked the Trump administration for facilitating this “constructive dialogue” and noted that the meeting acknowledged the traditional banking sector’s concerns about digital asset legislation. However, the ABA also emphasized that any related legislation must support local credit supply for households and small and medium-sized enterprises to maintain the safety and soundness of the financial system.

Additionally, the ABA called on senators in Congress to close regulatory loopholes that might allow crypto companies to pay stablecoin interest or returns to consumers, considering this issue to be one of the core differences between the traditional banking sector and the crypto industry. The banking industry is concerned that such arrangements could exacerbate deposit outflows or force banks to raise deposit rates to compete. According to reports, the White House is expected to continue promoting follow-up consultations to seek a compromise between supporting digital asset innovation and maintaining the traditional financial system. (Crowdfund Insider)