- White House stablecoin talks ended without agreement, but participants called the discussions productive.
- Banks proposed strict limits on stablecoin interest to protect traditional deposits.
- Crypto firms requested broader rules allowing transaction-based rewards and innovation flexibility.
High-level negotiations between major banks, crypto companies, and policymakers at the White House are intensifying as regulators work toward a national framework for stablecoin regulation. The latest closed-door meeting ended without a final agreement, but participants described the discussions as more constructive and detailed than earlier sessions, signaling that a compromise may be getting closer.
Banks Push Hard Limits, Crypto Firms Push Back
As reported by Eleanor Terrett, the center of the debate is whether payment stablecoins should be allowed to offer yield or rewards to users. Banking representatives entered the meeting with a formal proposal outlining “yield and interest prohibition principles,” arguing that stablecoins paying interest could draw deposits away from traditional banks and weaken lending capacity in the broader financial system.
Crypto companies, however, argued that transaction-based rewards or limited incentive programs should remain possible, saying innovation could be slowed if the rules are too restrictive. Negotiators spent much of the session discussing what types of activities could qualify as “permissible,” a key term that could determine how flexible the final legislation becomes.
Sources said a small but meaningful shift in tone: banks signaled openness to narrow exemptions, something they had previously resisted, suggesting that both sides may be preparing for middle-ground solutions.
Ripple: “Compromise Is in the Air”
Following the meeting, Stuart Alderoty, Chief Legal Officer at Ripple, described the talks in optimistic terms, saying:
“Productive session at the White House today, compromise is in the air. Clear, bipartisan momentum remains behind sensible crypto market structure legislation. We should move now, while the window is still open, and deliver a real win for consumers and America.”
Major Financial Players at the Table
The meeting brought together top financial institutions, including JPMorgan, Goldman Sachs, Bank of America, Citi, Wells Fargo, and others, alongside crypto firms, policy organizations, and congressional staff.
Officials are reportedly aiming to move discussions forward quickly, with policymakers encouraging negotiators to reach progress on key issues before early-March legislative timelines.
Why This Debate Matters
The outcome of these talks could shape how stablecoins function in the United States for years to come. A strict yield ban would position stablecoins primarily as payment instruments, while allowing limited rewards could push them closer to bank-like financial products that compete with deposits. The final compromise, if reached, will likely define how innovation and financial-system stability are balanced in the next phase of crypto regulation.
Related: CFTC Revises Rules to Let National Trust Bank Issue Stablecoins
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