White House stablecoin talks end without a deal
A White House-hosted meeting between banking and crypto stakeholders ended without agreement on whether stablecoin “rewards” should be treated like interest. The unresolved issue continues to stall U.S. digital-asset market-structure legislation.
As Bloomberg reported, a closed-door White House meeting intended to narrow differences between banks and the crypto industry ended without a breakthrough, leaving lawmakers still divided over how aggressively federal rules should restrict stablecoin yield and reward programs. Banking groups and crypto advocates have been meeting with administration staff as Congress tries to move a market-structure bill that would set clearer federal guardrails for the sector.
The core dispute is whether stablecoin incentives that look like interest should be allowed at all. Bank trade groups argue that letting stablecoins function like high-yield deposit substitutes could pull funds out of insured banks and weaken the deposit base that supports local lending. In a statement after the Feb. 10 session, the Bank Policy Institute, American Bankers Association and Independent Community Bankers of America said legislation can support innovation, but not “without putting the bank deposits that fuel local lending and drive economic activity at risk.”
That posture has been consistent across the talks. Following an earlier White House gathering on Feb. 2, a broader coalition of banking groups urged policymakers to ensure any market-structure framework protects “the safety and soundness of our financial system,” and framed stablecoin yield as a financial-stability concern rather than a product feature.
Crypto advocates say the discussion is being driven by how lawmakers define “rewards” versus “interest,” especially when platforms offer incentives that are tied to activity such as payments or loyalty programs. The Blockchain Association, which attended the Feb. 2 meeting, said stablecoin rewards remain one of the key unresolved issues and urged negotiators to keep working toward bipartisan legislation.
Policy watchers expect the White House to keep brokering talks. A Feb. 9 update from law firm Paul Hastings said administration staff asked both sides to return with proposed language changes to help advance the bill.
The material on GNcrypto is intended solely for informational use and must not be regarded as financial advice. We make every effort to keep the content accurate and current, but we cannot warrant its precision, completeness, or reliability. GNcrypto does not take responsibility for any mistakes, omissions, or financial losses resulting from reliance on this information. Any actions you take based on this content are done at your own risk. Always conduct independent research and seek guidance from a qualified specialist. For further details, please review our Terms, Privacy Policy and Disclaimers.
Articles by this author
