Ethereum (ETH) markets remain tense as investors await the outcome of a critical White House meeting scheduled for Tuesday, Feb. 10. The closed-door session, involving senior administration staff, banking representatives, and crypto industry leaders, aims to resolve a contentious dispute regarding stablecoin yields that has stalled major legislation. As of writing, traders are pricing in potential regulatory shifts, with the outcome expected to ripple through the decentralized finance (DeFi) sector that relies heavily on Ethereum infrastructure.
Regulatory Deadlock: Banks vs. Stablecoins
The upcoming meeting serves as a pivotal follow-up to a Feb. 2 session that ended without a consensus. At the core of the conflict is the CLARITY Act (H.R. 3633), a comprehensive market-structure bill that was pulled from a scheduled Senate Banking Committee markup in January. The delay followed opposition from industry leaders, including Coinbase CEO Brian Armstrong, who criticized the bill for potentially favoring banks by restricting crypto firms’ ability to offer yields on digital assets.
?SCOOP: The next iteration of the White House stablecoin yield discussions between crypto and the banks has been scheduled for Tuesday, a source within the banking industry tells me. The confab will again be staff-level, but this time representatives from the banks themselves…
— Eleanor Terrett (@EleanorTerrett) February 6, 2026
Traditional financial institutions argue that high-yield stablecoins pose a systemic risk to the banking model. Reports indicate that the Treasury Department has projected a potential $6.6 trillion deposit drawdown if stablecoins are permitted to offer rewards unchecked. With stablecoin yields hovering around 3.5% compared to bank deposit rates near 0.1%, the incentive gap is driving significant concern among lenders. This regulatory uncertainty creates a complex backdrop for investors, mirroring recent volatility discussed in analysis of why crypto markets faced downward pressure earlier this month.
Institutional Stakes and Market Structure
The outcome of the Feb. 10 meeting will likely determine the fate of the CLARITY Act and the broader operational rules for U.S. dollar-pegged assets. Invitations for the discussion reportedly include major financial players such as JPMorgan, Bank of America, and Wells Fargo, signaling the high stakes involved for the traditional banking sector.
Treasury Secretary Scott Bessent emphasized the administration’s stance during recent Senate testimony, stating that “deposit volatility is very undesirable” and pledging to ensure stablecoin yields do not destabilize the banking system. Despite these regulatory headwinds, institutional commitment to the asset class continues to grow. For example, Fidelity recently launched its own asset manager stablecoin, signaling that major firms view the technology as inevitable regardless of short-term policy disputes.
Furthermore, the underlying confidence in the Ethereum network remains strong among large-scale holders. Data shows massive accumulation is occurring behind the scenes, with Bitmine becoming the world’s largest Ethereum holder, controlling over 4.28 million ETH. This dichotomy between regulatory caution and improved on-chain fundamentals suggests that while short-term price action may be rocky, the long-term thesis for Ethereum-based settlements is intact.
Market Outlook and Key Levels
For traders, the immediate focus is on whether the Feb. 10 talks produce a viable compromise. A resolution that allows the CLARITY Act to proceed could be a significant bullish catalyst, reducing uncertainty for the remainder of 2026. However, if the administration signals a hard line against stablecoin yields, it could trigger a sell-off in DeFi-related assets.
Market participants should closely monitor how news from the meeting impacts ETH liquidity and volume. According to reports on the negotiation process, crypto firms are preparing realistic proposals to offer community banks a larger role in reserve custody as a bargaining chip. Investors uncertain about the technical setup should review the latest Ethereum price forecast to identify critical support zones that may be tested if the meeting concludes without a deal.
