The White House scheduled a Tuesday, February 10, meeting between crypto firms and banking representatives, marking the first time major banks will attend discussions on whether stablecoins can offer interest or rewards.
The staff-level session follows a February 2 meeting that ended without resolution on the contentious issue blocking passage of the CLARITY Act.
Bank representatives will physically attend this round of negotiations, an escalation from prior meetings where banking trade groups sent limited delegations.
The change reflects growing pressure to resolve disputes over stablecoin yield provisions before a White House-imposed February deadline.
What Happened
Presidential crypto adviser Patrick Witt directed participants in the February 2 meeting to reach a compromise on stablecoin rewards by month's end.
That session included representatives from Coinbase, Ripple (XRP), Kraken, Circle (USDC), and banking trade groups including the Bank Policy Institute and American Bankers Association.
Banks are lobbying to prohibit crypto firms from offering interest on stablecoins, arguing such products could trigger massive deposit outflows. Standard Chartered projected potential outflows of $500 billion from developed economies and $1 trillion from emerging markets by 2028 if yield provisions remain unrestricted.
Crypto firms counter that restrictions aim to stifle legitimate competition and preserve banks' regulatory advantages. However, Tether voiced support for draft legislation banning stablecoin yields, creating divisions within the industry.
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Why It Matters
Treasury Secretary Scott Bessent told the Senate Banking Committee on February 5 he would work to ensure stablecoin growth does not trigger deposit volatility at community banks.
His comments aligned with banking sector concerns while defending the GENIUS Act's potential to expand dollar dominance through Treasury-backed stablecoins.
The dispute has stalled the CLARITY Act, bipartisan crypto market structure legislation that already cleared the Senate Agriculture Committee. Coinbase CEO Brian Armstrong withdrew support for the bill last month over the stablecoin yield restrictions.
White House officials are seeking practical progress on technical points to advance the bill through the Senate Banking Committee. The Tuesday meeting represents another attempt to broker compromise between industries with fundamentally opposing positions on whether stablecoins should compete directly with traditional deposit accounts.
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