Mark

🚨NEW: Details from the White House stablecoin yield meeting, per banking and crypto sources in the room: People on both sides called the meeting ‘productive,’ but, again, no compromise was reached by the end of the meeting. However, deal specifics were discussed in more detail today. For example, banks and the banking trades came prepared with a written set of ‘prohibition principles’ (in the pic below) which detailed what they are willing and not willing to compromise on when it comes to stablecoin rewards. One source pointed out a key concession from the banks being the “any proposed exemption” language in paragraph two, because they were previously unwilling to discuss any exemptions with respect to offering rewards on a transaction-based basis at all. Chief Legal Officer at @Ripple, @s_alderoty, said “compromise is in the air.” There was heavy focus on so-called “permissible activities,” aka what kinds of account activity could be allowed in order for crypto firms to offer rewards. Crypto wants definitions on this to be broad, banks want it to be narrowed. For next steps, further discussions between the present parties are expected to happen in the coming days, but it’s unclear whether another meeting of this scale will take place before the end of the month. The White House has urged both parties to reach a deal on the matter by March 1st. This gathering was also notably smaller than the first one. Led by Executive Director of the President’s Crypto Council @patrickjwitt, Senate Banking Committee staff were also present. On the crypto side, attendees included @iampaulgrewal of @coinbase, @milesjennings of @a16z, @s_alderoty of @Ripple, @JoshRosner from @Paxos, @SummerMersinger of @BlockchainAssn and @_jikim of @crypto_council. Banks in the room were @GoldmanSachs, @jpmorgan, @BankofAmerica, @WellsFargo, @Citi, @PNCBank and @usbank, along with trade groups @bankpolicy, @ABABankers and @ICBA. Bottom line: It was a smaller, more productive meeting than the first and both sides are talking about ways to solve the issues at hand, but no final resolution has been reached yet.