A White House meeting has been scheduled for next week to break the logjam on crypto market infrastructure legislation. It has been widely reported that several crypto firms have withdrawn their endorsement of the bill amid aggressive lobbying by traditional banks, which fear emerging competition.
According to Reuters, the meeting is being hosted by the White House crypto council and will include several high-profile crypto firms, including Coinbase, Ripple, Kraken, and the Digital Chamber.
Cody Carbone, the CEO of the Digital Chamber, lauded the White House for “pulling all sides to the negotiating table.”
Establishment banks have long operated a highly effective lobbying strategy. The fear-mongering regarding stablecoin yield is emblematic of the bank industry’s ability to use FUD and money to alter policy, limit competition, and create regulatory moats to protect a business they cannot rationally justify. While they claim hundreds of billions, or even trillions, will flee from bank deposits because of the higher yields offered by stablecoins, the truth is this is just nonsense. All banks will issue stablecoins, as this is the future of value transfer. This obviously means they will be able to compete on a level playing field with digital asset firms.
While the above should be obvious to all, for some policymakers, it is easier to block competition and accept bank donations than to do what is right for consumers.
Crypto market infrastructure legislation is vital to the future of finance, enabling new and improved financial services for the masses. Banks are part of this equation, but they are currently doing themselves a disservice by fighting the inevitable.