No Agreement Reached In White House Meeting Between Banks And The Crypto Industry
A second White House assembly between main U.S. banks and main crypto corporations ended and not using a deal on stablecoin yield, leaving probably the most contentious points in U.S. digital asset regulation unresolved.
The February 10 session, led by Patrick Witt, Executive Director of the President’s Crypto Council, centered on whether or not stablecoin issuers ought to be allowed to supply yield or rewards to holders.
While individuals described the talks as extra detailed than earlier discussions, no compromise was reached. The end result retains the proposed Digital Asset Market Clarity Act of 2025, generally known as the CLARITY Act, stalled within the Senate Banking Committee.
Stablecoin Yield on the Center of the Dispute
At the guts of the disagreement is whether or not stablecoin rewards resemble financial institution curiosity and, if that’s the case, ought to face comparable restrictions.
Banking representatives from Goldman Sachs, JPMorgan, Bank of America, Wells Fargo, Citi, PNC, and U.S. Bank argued that yield-bearing stablecoins might set off large-scale deposit outflows from conventional banks.
Banks offered a written set of “prohibition ideas” calling for a ban on “any type of monetary or non-financial consideration” supplied to stablecoin holders. They contend that permitting such rewards might undermine lending capability and disrupt the normal deposit mannequin.
Crypto corporations, together with Coinbase, Ripple, a16z, Paxos, and the Blockchain Association, pushed again. They argue that stablecoin rewards are a core characteristic of on-chain finance and essential for truthful competitors with conventional monetary merchandise.
Industry representatives additionally mentioned overly restrictive guidelines might sluggish innovation or drive exercise exterior the United States.
CLARITY Act Remains in Limbo
The debate over stablecoin yield has change into a key impediment for the CLARITY Act, which goals to outline regulatory oversight for digital property and make clear the roles of the SEC and the CFTC. The invoice handed the House in 2025 however has not superior within the Senate as a result of unresolved considerations round stablecoin regulation.
Although banks maintained a agency stance, individuals famous a shift in tone. For the primary time, banking representatives signaled restricted openness to discussing potential exemptions for transaction-based rewards. However, disagreements over what qualifies as “permissible actions” stay unresolved.
The White House has urged each side to succeed in an settlement by March 1 to protect legislative momentum. Further discussions are anticipated within the coming days, although it’s unclear whether or not one other full-scale assembly will likely be held earlier than the deadline.
Until a compromise is reached, stablecoin regulation and broader reform of the U.S. crypto market construction stay in a holding sample.
Cover picture in ChatGPT, BTCUSD chart on Tradingview
