The American Bankers Association responds to the White House cryptocurrency conference: Relevant legislation must support local credit

The American Bankers Association (ABA) issued a statement regarding the cryptocurrency industry meeting held at the White House that day. The meeting aimed to advance the legislative process related to cryptocurrency market infrastructure and invited representatives from cryptocurrency companies and traditional banking to participate together.

In the statement, the ABA thanked the Trump administration for facilitating this "constructive dialogue" and noted that the meeting acknowledged the traditional banking industry's concerns regarding digital asset legislation. However, the ABA also emphasized that any related legislation must support local credit supply aimed at households and small businesses to maintain the safety and soundness of the financial system.

Additionally, the ABA called on congressional senators to close regulatory loopholes that might allow cryptocurrency companies to pay consumers interest or returns on stablecoins, viewing this issue as one of the core differences between traditional banking and the cryptocurrency industry. The banking sector is concerned that such arrangements could exacerbate deposit outflows or force banks to raise deposit rates to compete. Reports indicate that the White House is expected to continue pushing for follow-up consultations to seek a compromise between supporting digital asset innovation and maintaining the traditional financial system.