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By Hannah Lang
Feb 3 (Reuters) - A White House gathering aimed astatine breaking a months‑long stalemate betwixt large U.S. banks and cryptocurrency firms ended Monday without immoderate agreement, underscoring industry divisions that proceed to endanger advancement connected landmark digital‑asset legislation.
The closed‑door session, convened by the White House’s crypto council, brought unneurotic representatives from the crypto manufacture and the banking manufacture successful an effort to reach an statement connected stalled crypto marketplace operation legislation. Both sides emerged from the gathering describing it arsenic constructive, but cardinal disagreements that upended the bill's advancement remained unresolved.
Representatives from commercialized groups for the banking and crypto industries were successful attendance, including the American Bankers Association, the Independent Community Bankers of America, the Blockchain Association and The Digital Chamber.
Crypto marketplace operation authorities has been held up by a clash betwixt the 2 industries implicit however the measure treats involvement and different rewards paid connected stablecoins, a sticking constituent that has pitted the 2 sides against each different for months. Banks person been pushing for connection successful the measure prohibiting the practice.
Crypto companies accidental providing rewards specified arsenic involvement is important for recruiting caller customers and that barring them from doing truthful would beryllium anti-competitive. Banks accidental the increased contention could effect successful insured lenders experiencing an exodus of deposits -- the superior root of backing for most banks -- perchance threatening financial stability.
Monday's White House gathering was intended to forge compromise aft the Senate Banking Committee postponed a markup past period amid rising objections from some sectors and fears that the measure did not person capable enactment to beforehand to the afloat Senate.
While some sides successful statements called the gathering constructive, it did not effect successful an agreement, according to 1 root who attended and declined to be identified discussing backstage argumentation discussions.
The root anticipated that determination volition beryllium consequent White House meetings successful an effort to resoluteness the impasse. The White House did not respond to a petition for comment.
The Clarity Act aims to make national rules for integer assets, the culmination of years of crypto manufacture lobbying. Crypto companies person agelong argued that existing rules are inadequate for integer assets, and that authorities is indispensable for companies to proceed to run with ineligible certainty successful the U.S.
The House of Representatives passed its mentation of the measure successful July.
(Reporting by Hannah Lang successful New York; editing by Pete Schroeder and Chizu Nomiyama )
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