whitehouse

📅 January 28
While the crypto market advances and stablecoins become increasingly integrated into payments and platforms, something much more delicate is happening in Washington: the heart of the traditional financial system and the new digital financial system are clashing directly at the table of power.

📖According to Reuters, the meeting will be organized by the White House Crypto Council and will revolve around an issue that has become the main sticking point within the Senate Banking Committee: the treatment of stablecoin rewards under the Genius Act, the law passed last summer.
Although the rule prohibits stablecoin issuers from paying interest directly to users, it leaves a gray area open: third-party platforms, such as exchanges, could offer rewards. This detail is what has ignited the tension.
Banking groups have strongly opposed this ambiguity, arguing that allowing rewards could drain deposits from the banking system, particularly affecting community banks. From the crypto side, however, they accuse the banks of trying to stifle competition after the rules were already negotiated before the law was passed.
The clash has already had political repercussions. The Senate Banking Committee was scheduled to debate the bill on January 15, but the hearing was canceled at the last minute after Coinbase withdrew its support, citing concerns about this issue and the treatment of tokenized stocks.
Meanwhile, the Senate Agriculture Committee is proceeding with its hearing this week, although the proposed text lacks Democratic support. Meanwhile, the House of Representatives had already passed the Clarity Act months earlier with bipartisan support, but progress in the Senate has become unstable.
Against this backdrop, the White House has intensified pressure for the swift passage of a crypto market structure law. Patrick Witt, of the President's Council of Advisors on Digital Assets, was direct: there will be a law, the question is when.

Topic Opinion:
This is one of the most revealing moments in the clash between the old and new financial systems. Banks fear losing deposits. Crypto companies are advocating for incentives that would make stablecoins more attractive than bank accounts.
💬 Do you think allowing stablecoin rewards would put banks at risk… or would it simply create real competition?

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