Stablecoin Yield Deal Remains Elusive After White House Crypto Talks

TLDR

• Crypto firms outnumbered bankers at a White House meeting on stablecoin yields.
• The White House directed parties to agree on bill language by the end of February.
• Banks cited need for member approval before negotiating changes to the bill.
• The Senate’s delayed vote risks derailing the crypto bill this year.

The White House recently hosted a high-level meeting with crypto executives and Wall Street bankers to address the stalled progress on U.S. crypto market structure legislation. Despite extended discussions, both sides remain apart on the key issue of stablecoin yields, with the administration now pushing for a compromise by the end of February.

White House Pushes for Agreement on Stablecoin Yields

The White House called a meeting on Monday to resolve tensions between crypto firms and Wall Street bankers. The main objective was to move negotiations forward on a new legislative framework for stablecoin yields. The discussion took place in the White House’s Diplomatic Reception Room and lasted over two hours.

According to people familiar with the meeting, crypto firms had a strong presence and were eager to find common ground. However, they found banking representatives reluctant to commit to any language changes in the draft legislation. The White House reportedly directed both sides to reach a compromise by the end of February, focusing specifically on yield and rewards attached to stablecoins.

Banks Say Trade Groups Must Approve Any Policy Shift

Banking representatives at the meeting noted that any shift in policy language would need approval from their broader trade groups. These groups include the American Bankers Association and the Financial Services Forum, which represent major Wall Street institutions.

In a joint statement, the banking groups expressed openness to further talks. “We must ensure that any legislation supports local lending to families and small businesses while protecting the financial system’s safety,” they stated. This reflects banks’ ongoing concern that allowing yield-bearing stablecoins could affect traditional deposit systems.

Crypto Industry Still Sees Senate as Key to Progress

While the meeting was important, many in the crypto industry remain focused on progress in the U.S. Senate. The crypto market structure bill has passed the House of Representatives and cleared one Senate committee. However, it still needs approval from the Senate Banking Committee before it can go to a full vote.

Crypto industry leaders warn that delays in this process may prevent the bill from passing this year. Cody Carbone, policy chief at the Digital Chamber, called the meeting a step forward. “We are committed to doing the hard work to ensure legislative progress does not punish innovators or consumers,” he said.

Smaller Working Group to Finalize Bill Language

Sources confirmed that negotiations would continue with a smaller group of stakeholders. The White House has instructed this group to come back with concrete proposals on yield-related provisions. This suggests an effort to move beyond broad statements and focus on specific changes.

Summer Mersinger, CEO of the Blockchain Association, said the gathering was useful. She praised White House adviser Patrick Witt and noted that the meeting was “an important step forward in finding solutions to deliver bipartisan digital asset market structure legislation.”

Despite the effort to move the bill forward, other political challenges remain. Some Democrats are pushing for anti-corruption rules tied to President Trump’s crypto ties. They also want full bipartisan staffing of the Commodity Futures Trading Commission and stronger protections against illicit finance in digital assets.

As discussions continue, the bill’s future depends on how quickly lawmakers and industry representatives can resolve these remaining disputes. Meanwhile, ongoing government funding issues may limit how much can be accomplished in the short term.

The post Stablecoin Yield Deal Remains Elusive After White House Crypto Talks appeared first on CoinCentral.