No Agreement Reached at White House Meeting Between Banks and Crypto Industry
The second White House meeting between major US banks and leading crypto firms ended without an agreement on stablecoin yields, leaving one of the most contested issues in US digital asset management unresolved.
The February 10 session, led by Patrick Witt, Executive Director of the President’s Crypto Council, focused on whether stablecoin issuers should be allowed to provide yields or rewards to owners.
While participants described the interviews as more detailed than previous interviews, no consensus was reached. The result keeps the proposed Digital Asset Market Transparency Act of 2025, known as the CLARITY Act, stalled in the Senate Banking Committee.
BTC's price trends to the downside on the daily chart. Source: BTCUSD on Tradingview
Stablecoin Yields at the Center of Controversy
The point of disagreement is that stablecoin rewards are similar to bank interest and, if so, should face the same restrictions.
Bank representatives from Goldman Sachs, JPMorgan, Bank of America, Wells Fargo, Citi, PNC, and US Bank argued that yield-generating stablecoins could cause large deposit outflows from traditional banks.
Banks have issued a written set of “prohibition regulations” that call for a ban on “any type of financial or non-financial consideration” offered to stablecoin holders. They argue that allowing such rewards would undermine lending capacity and disrupt the traditional deposit model.
Crypto firms, including Coinbase, Ripple, a16z, Paxos, and the Blockchain Association, pushed back. They argue that stablecoin rewards are a key feature of on-chain currencies and are necessary for fair competition with traditional financial products.
Industry representatives also say overly restrictive regulations could slow innovation or drive work outside the United States.
The CLARITY Act Remains in Limbo
The debate over stablecoin yields has become a major obstacle to the CLARITY Act, which aims to define regulatory oversight of digital assets and clarify the roles of the SEC and CFTC. The bill passed the House in 2025 but has yet to advance in the Senate due to unresolved concerns about stablecoin regulation.
Although banks have maintained a strong stance, stakeholders have noted a change in tone. For the first time, bank representatives showed limited openness to discussing the possible exemption of performance-based rewards. However, disagreements about what qualifies as “permitted activities” remain unresolved.
The White House has urged both sides to reach an agreement by March 1 to preserve legal momentum. More talks are expected in the coming days, although it is unclear whether another full meeting will be held before the deadline.
Until a consensus is reached, stablecoin regulation and broader structural changes to the US crypto market remain in a holding pattern.
Cover image on ChatGPT, BTCUSD chart on Tradingview
Planning process because bitcoinist focuses on delivering well-researched, accurate, and unbiased content. We maintain strict sourcing standards, and each page is diligently reviewed by our team of senior technical experts and experienced editors. This process ensures the integrity, relevance, and value of our content to our readers.
