White House to Hold Feb. 10 Meeting on Stablecoin Yield Rules With Banks and Crypto Firms
The post White House to Hold Feb. 10 Meeting on Stablecoin Yield Rules With Banks and Crypto Firms appeared first on Coinpedia Fintech News
The White House is preparing for another important meeting on February 10 to discuss stablecoin rules with banks and crypto companies. The talks are part of ongoing efforts to shape clear regulations for the U.S. crypto market.
The main issue remains whether stablecoin issuers should be allowed to offer yield or interest to users.
Why Stablecoin Yields Are a Big Concern
Independent journalist Eleanor Terrett highlighted that a new round of White House discussions is about the happen next Tuesday.
This follows an earlier closed-door session earlier in the week where staff-level participants from both sectors met but failed to fully resolve major policy gaps. Even though attendees described the tone as productive, no final consensus was reached.
However, the main goal of this discussion is about clarisfication over the Stablecoin Yield talks.
Why Stablecoin Yields Are a Big Concern?
Traditional banks are strongly worried about yield-bearing stablecoins. They believe that if crypto firms are allowed to offer interest on stablecoins, customers may move their money away from bank deposits. This could weaken the banking system and reduce financial stability.
Therefore, banking groups and Treasury officials have pushed for strict limits on stablecoin rewards. They argue that only regulated banks should be allowed to offer interest-based products to protect consumers and the economy.
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Crypto firms strongly disagree. They say user rewards are a standard growth tool in digital finance, and banning them would hurt competition and give traditional banks an unfair advantage in the market.
Several industry participants have suggested targeted edits to the draft framework to make the bill more balanced and practical. Perhaps, banking representatives have not yet signaled acceptance of those changes.
Next Meeting to Bring Both Sides Together
The upcoming discussion will include staff-level officials, bank representatives, and crypto trade groups. This is an important change from earlier meetings, which mainly involved government officials and policy experts.
With the crypto market facing recent volatility, regulatory clarity is widely seen as a potential confidence booster for investors and institutions
If both sides reach a compromise, it may help speed up long-delayed crypto legislation.
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FAQs
Regulators and banks fear yield-bearing stablecoins could lure deposits away from traditional banks, potentially weakening the financial system’s stability and consumer protections.
Banks argue that only regulated institutions should offer interest products to safeguard customers and maintain economic stability, viewing crypto yields as a competitive threat to deposits.
The February 10 meeting aims to bridge policy gaps between banks and crypto firms, seeking clarity on yield rules to advance clearer U.S. crypto regulations.
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