White House Stablecoin Yield Talks Show Progress with Banks – No Deal Reached Yet

White House Stablecoin Yield Talks Show – No Deal Reached Yet

The crypto world is buzzing after the latest White House meeting on stablecoin yields. Banks and crypto leaders sat down for talks, and while there was some , no final deal came out of it. This is a big step in the push for clear U.S. rules on digital assets.

What Happened at the White House Meeting?

On Thursday, the White House hosted a key meeting between crypto insiders and big banks. The goal? To break a deadlock on stablecoin rewards. Sources say the talks went long – way past the planned two hours. White House staff even took phones to keep everyone focused.

Ji Kim, CEO of the Crypto Council for Innovation, called it a “constructive meeting.” He said it builds on past talks to create rules that protect U.S. consumers and keep America competitive in crypto. Paul Grewal, Coinbase’s chief legal officer, agreed on social media. He noted the “cooperative tone” and said both sides made more .

This was the third meeting in a row. The first ones hit roadblocks, but this time, things moved forward. Still, no compromise on the big issue: Can stablecoins offer yields to users?

Why Are Stablecoin Yields Such a Hot Topic?

Stablecoins are cryptocurrencies pegged to the U.S. dollar, like USDC or USDT. They stay steady in value, making them great for payments and savings in crypto. Platforms like Coinbase let users earn rewards – or yields – on their stablecoin holdings. It’s like interest on a bank account, but often higher.

Banks hate this. They say it pulls deposits away from traditional accounts, hurting their core business. The GENIUS Act, a recent law, let crypto firms offer these rewards. Now, banks want the new Digital Asset Market Clarity Act to ban them completely.

• Crypto side: Yields attract users and boost innovation.
• Bank side: Rewards threaten bank deposits and stability.
• White House view: Some yields okay, but need balance to pass laws.

An earlier idea was to allow yields only on active uses, like transactions, not just holding. Banks rejected it. Thursday’s talks pushed for middle ground.

Key Players and Their Stands

Crypto leaders like Ji Kim and Paul Grewal push for rules that let innovation thrive. Banks brought a tough “principles document” before, but this time, the White House pressed hard for a deal.

Inside sources say the White House favors some stablecoin rewards. They told banks it’s time to compromise so the market structure bill can move forward.

“The dialogue was constructive and the tone cooperative… more progress.” – Paul Grewal, Coinbase CLO

This bill, the Digital Asset Market Clarity Act, is crypto’s top goal. Clear rules could unlock billions in investment and make crypto a permanent part of U.S. finance.

What’s Next? Hurdles Still Ahead

Even if banks and crypto agree on yields, Congress must act. The Senate Banking Committee needs a hearing. The Senate Agriculture Committee already approved its version on party lines.

Democrats want changes:

• Ban senior officials from big crypto business ties (aimed at figures like Trump).
• Fill empty seats at CFTC and SEC, especially Democratic spots.
• Tighter rules on money laundering in DeFi.

Republicans and the White House haven’t budged enough yet. Without Democrats, no bill passes the Senate.

Why This Matters for Crypto and Banks

For crypto users, stablecoin yields mean better returns without stock market risks. Platforms compete on high APYs – annual percentage yields – drawing in everyday investors.

Banks fear losing market share. Deposits fund loans; less deposits mean less lending. But crypto argues yields come from DeFi protocols, not bank money.

A deal could:

1. Clear regulatory fog.
2. Spark a crypto boom in the U.S.
3. Balance innovation with safety.

Without it, crypto firms might move overseas, hurting U.S. leadership.

Broader Impact on U.S. Crypto Regulation

The Clarity Act would set rules for all digital assets – who oversees what, how to trade, custody rules. Stablecoin yields are just one snag in a bigger market structure bill.

Progress here shows Washington taking crypto seriously. Past meetings laid groundwork; this one built on it. Ji Kim hinted at “more to come.”

Banking groups have stalled before, as Coinbase CEO Brian Armstrong noted. But White House pressure is changing the game.

Outlook: Optimism with Caution

is real, but the road is long. Watch for more meetings, committee hearings, and Democratic buy-in. If passed, expect:

• More institutional money into crypto.
• Stablecoin growth without fear.
• U.S. as global crypto hub.

Stay tuned – these talks could reshape finance. What do you think? Will banks budge on stablecoin yields?

Update: February 19, 2026

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