Ripple CEO Brad Garlinghouse recently commented on ongoing tensions between the cryptocurrency industry and time-honored banking groups following public comments on stablecoin profitability negotiations at the White House.
His response came after a series of X posts involving journalist Eleanor Terrett and White House adviser David Sacks, which ultimately led to Garlinghouse sending a message to banks urging them to act in good faith.
Talks surrounding the profitability of Stablecoins have sparked an online debate
Latest chapter of the saga about cryptocurrencies and banks developed on the social media platform X, where journalist Eleanor Terrett was reporting on the fallout from a controversial White House meeting on stablecoin yield regulation. Interestingly, it was Patrick Witt, White House adviser on digital assets wanting to adopt the bill by March 1, but this deadline was not met.
According to Terrett, an anonymous source who claimed to be directly involved in the talks painted a bleak picture of the negotiations, which led to opposition from banking.
Terrett reported it Banking trade representatives from the American Bankers Association (ABA), the Independent Community Bankers of America (ICBA) and the Bank Policy Institute, all present at the White House meeting, were “embarrassed” by the anonymous source’s formulations and did not share these views. These views are linked to the source’s claims that there is a very real possibility of negotiations will fall apart unless Ripple CEO Brian Armstrong comes to the table.
David Sacks, chairman of the President’s Council of Advisors on Science and Technology and the White House cryptocurrency, responded to Terrett. Praising crypto policy broker Patrick Witt, Sacks wrote that The cryptocurrency industry has already made massive concessions on the viability of stablecoins and has called on banks to reciprocate. The issue concerns the viability of stablecoins: whether digital dollar issuers should be able to offer interest rate returns to holders.
Ripple CEO says banks should act in good faith
There is still a problem in negotiating a compromise between banks and the cryptocurrency industry. Coinbase CEO Brian Armstrong expressed concerns about the cryptocurrency bill, saying the bill was of interest to banking they tried to suppress competition. However, Armstrong later commented that it currently exists path to achieving a win-win outcome. for the cryptocurrency industry, the banking sector and American consumers.
According to comments from Ripple CEO Brad Garlinghouse, the ball is now in the court of banks, which must act in good faith. “The door to the transaction is wide open. Banks just have to act in good faith and go through with it.” Garlinghouse said.
This stance is consistent with Garlinghouse’s support for collaborative and pro-crypto legislation. Ripple CEO recently predicted it the long-delayed CLARITY Act will be passed by the end of April. The bill aims to define the structure of the digital asset market and reduce jurisdictional uncertainty between regulators.
Featured image from Peakpx, chart from Tradingview.com
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