The White House is preparing for a possible new high-level meeting on the issue of stablecoin yield. The latest round of negotiations between banking associations and representatives of the crypto industry ended without a concrete solution. As a result, one of the key elements of U.S. crypto legislation is once again in limbo.
This could be another attempt by the administration to find a compromise. According to crypto journalist Eleanor Terrett, citing sources, the meeting is most likely to take place on Thursday.
Officials and market participants say the main stumbling block remains the same. The question is whether holders of stablecoins pegged to the dollar should receive rewards similar to interest. This very dispute is currently blocking progress on the Digital Asset Market Clarity Act bill.
The White House Wants to Settle the Stablecoin Rewards Dispute
The White House is planning another closed-door meeting with banks and crypto companies. The dispute is the same: should stablecoin issuers pay token holders interest or other rewards?
Banks are against it. They believe such payments could weaken the system. If customers start moving deposits into stablecoins, traditional banks will lose some funds. And that is already a risk to financial stability.
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Crypto companies think differently. In their view, a ban on rewards would give banks an advantage. If stablecoins do not generate income, users will still look for alternatives. And some of them may move into less regulated segments of the market.
Negotiations have already taken place. The last meeting was held on February 3, 2026. At that time, bankers and representatives of the crypto industry discussed the place of digital assets in the economy. But they could not agree on the rules for yield.
Now the White House is trying again to bring the parties to the table. Moreover, the administration has proposed new wording for the bill. In fact, this is about revising the text of the future rules.
Until banks and crypto organizations reach a common solution on the yield issue, regulatory reform will remain on hold. Without agreement on this point, it will not be possible to adopt the final rules.
Banks Fear Outflow of Funds, Crypto Companies See Rewards as Fair
Banks are increasingly talking about risks. If stablecoins start paying interest, money could leave traditional banks. For them, this is a direct threat to their deposit base.
Standard Chartered has estimated potential losses. According to the bank’s calculations, by 2028, U.S. financial institutions could lose up to $500 billion in deposits. This will happen if customers move funds into higher-yielding stablecoins.
Crypto companies disagree. They argue that users are already looking for ways to earn more on their assets. If rewards for stablecoins are banned, demand will not disappear. People will simply move into less regulated segments of the market. And according to them, the risks there are even greater.
The negotiations involve banking associations, crypto lobbying organizations including the Blockchain Association, as well as major exchanges focused on the U.S. market, such as Coinbase. This shows how serious the dispute has become and how many players are involved in the process.
The meetings have helped the parties better understand each other’s arguments. But the key issue of yield remains unresolved. As long as there is no agreement, the advancement of crypto regulation is effectively on hold.
