The American Bankers Association responds to the encrypted White House meeting: Relevant legislation must support domestic credit.

The American Bankers Association (ABA) issued a statement regarding a White House meeting on the crypto industry held that day. The meeting aimed to advance legislation related to crypto market infrastructure and invited representatives from both crypto companies and traditional banks to participate. In its statement, the ABA thanked the Trump administration for facilitating this "constructive dialogue" and noted that the meeting acknowledged the concerns of traditional banks regarding digital asset legislation. However, the ABA also emphasized that any related legislation must support local credit supply to households and small and medium-sized enterprises to maintain the safety and soundness of the financial system. Furthermore, the ABA called on senators to close regulatory loopholes that could allow crypto companies to pay stablecoin interest or yields to consumers, arguing that this issue is one of the core points of contention between traditional banks 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. The report states that the White House is expected to continue pushing for follow-up consultations to find a compromise between supporting digital asset innovation and maintaining the traditional financial system. (Crowdfund Insider)