Stablecoin News: White House Weighs New Stablecoin Talks as Crypto, Banks Clash

Key Insights:

• White House weighs fresh talks as stablecoin yield dispute keeps Senate crypto bill in limbo.
• Banks warn of $500B deposit losses while crypto firms defend stablecoin reward models.
• Coinbase withdraws Senate backing as yield ban fight slows broader market structure reform.

Stablecoin news is again focused on Washington as the White House prepares for another round of talks on stablecoin yield rules. The move follows a recent meeting between banking groups and cryptocurrency leaders that ended without agreement. As a result, a key portion of U.S. crypto legislation remains unresolved.

As reported by crypto reporter Eleanor Terrett, officials are considering calling for a high-level meeting on Thursday. Sources said discussions would focus on resolving disagreements about whether dollar-pegged stablecoins can offer interest-like rewards. The issue remains at the center of the hurdle to progress on the Digital Asset Market Clarity Act.

Stablecoin news meeting at White House / Source: X

The White House has already held private sessions with both sides. However, talks held on February 3, 2026, did not reach a consensus. Participants were unable to agree on clear rules regarding stablecoin rewards.

Stablecoin News: Yield Dispute Stalls Legislative Progress

Stablecoin news has brought out the ongoing clash over yield payments. Banks argue that allowing rewards on stablecoins could weaken the traditional deposit system. They warn that consumers may shift funds away from banks in search of higher returns.

Standard Chartered projected that U.S. banks could lose up to $500 billion in deposits by 2028 if stablecoins offer competitive yields. Banking groups circulated a handout during the White House meeting outlining “yield and interest prohibition principles.”

However, crypto companies do not agree to a broad prohibition. They claim that consumers already seek higher returns and may flow to less regulated channels if the rewards are banned. They argue that several consumers would face a higher risk elsewhere if the incentives of stablecoins are limited.

In addition to the stablecoin news, Coinbase withdrew its support for the Senate bill last month over provisions that would ban all yield payments linked to stablecoins. That move undermined bipartisan momentum in the Senate Banking Committee. While the House passed the CLARITY Act in July, the Senate is still struggling to gain the support it needs.

White House Seeks Compromise Before March 1 Deadline

The stablecoin news and White House discussions have intensified as lawmakers face a March 1 deadline. Tuesday’s session marked the second meeting in two weeks. The first, held on February 2, was described as constructive and fact-based.

White House crypto adviser Patrick Witt led both meetings. He now serves as Executive Director of the President’s Crypto Council. Senate Banking Committee staff also attended the latest session.

Crypto representatives included Coinbase, a16z, Ripple, Paxos, and the Blockchain Association. Banking participants included Goldman Sachs, JPMorgan, Bank of America, Wells Fargo, Citi, PNC, and US Bank. The breadth of attendance reflected the complexity of the issue.

Industry Responses Signal Cautious Movement

Several attendees commented publicly following the meeting. Ripple Chief Legal Officer Stuart Alderoty called the discussion productive. He said there was bipartisan momentum behind legislation to expand market structure.

Dan Spuller of the Blockchain Association stated that it was a smaller and more detailed session. He said that the banks negotiated from general prohibitive principles, not on the text of bills.

BitGo Chief Executive Mike Belshe said the GENIUS Act, which bars issuers from paying yield directly, should remain in place. He added that lawmakers should not delay legislation on wider market structure.

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