- U.S. crypto and banking executives met at the White House on February 10, but failed to reach an agreement on stablecoin yields.
- Banks circulated a principles document calling for a total ban on yields, exceeding the bill’s draft text.
- Crypto representatives expressed optimism for future progress, while the issue may return to the Senate Banking Committee.
A closed-door White House meeting aimed at resolving a key sticking point in U.S. crypto legislation ended without a breakthrough, as banks pushed for broader restrictions on stablecoin yields than currently outlined in the Digital Asset Market Clarity Act.
The session, the second in a series hosted by the White House, involved representatives from major crypto firms including Coinbase, Ripple, Andreessen Horowitz, the Blockchain Association, and the Crypto Council for Innovation. On the banking side, executives from Goldman Sachs, Citi, and JPMorgan Chase participated alongside trade groups like the American Bankers Association and Bank Policy Institute. Patrick Witt, President Trump’s crypto adviser, led the discussions (CoinDesk).
Banks circulated a ‘principles’ document demanding a general prohibition on any form of financial or non-financial consideration to stablecoin holders, including anti-evasion measures and a study on potential deposit impacts. This stance goes beyond the bill’s latest draft, which prohibits yields on passive holdings but allows limited activity-based rewards. Crypto participants arrived ready to compromise, but strongly pushed back, describing the banks’ demands as overly restrictive.
“Productive session at the White House today — compromise is in the air. Clear, bipartisan momentum remains behind sensible crypto market structure legislation,” said Ripple Chief Legal Officer Stuart Alderoty. Coinbase Chief Legal Officer Paul Grewal echoed the sentiment, noting “there’s still more work to do”.
The impasse highlights ongoing tensions: banks argue yields could trigger deposit flight, undercutting traditional lending, while crypto advocates warn a ban would stifle innovation in decentralized finance. Stablecoins like USDC and USDT are central to this debate, enabling efficient cross-border payments but raising regulatory concerns (Reuters).
Without resolution, the Clarity Act— which seeks to divide oversight between the SEC and CFTC—remains stalled in the Senate. Sources indicate the matter may revert to the Senate Banking Committee, with further meetings uncertain. Balanced analysis from stakeholders suggests risks to financial stability if yields drive unchecked capital shifts, but also opportunities for U.S. leadership in blockchain if innovation is preserved (Yahoo Finance).
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