The White House meets banks and crypto firms today to discuss stablecoin yields as lawmakers work on a U.S. crypto market structure bill.
The White House is set to host senior banking and crypto leaders today as stablecoin regulation returns to focus.
Discussions will center on how yields and rewards linked to stablecoins should be treated. The meeting comes as lawmakers struggle to advance a federal crypto market structure bill.
White House Convenes Banks and Crypto Firms
The meeting will be hosted by the White House crypto policy council on February 2. It will include representatives from major banks and crypto industry groups.
Confirmed participants include the Blockchain Association and the Crypto Council for Innovation.
Officials plan to address disagreements over stablecoin rewards. These rewards include interest and yield features tied to dollar-pegged tokens.
Banks and crypto firms have taken opposing positions on this issue.
The White House aims to encourage dialogue and reduce friction. The administration views regulatory clarity as necessary for market stability.
Officials have not shared details on proposed compromises ahead of the meeting.
Stablecoin Yields at the Center of Dispute
Banks argue that stablecoin yields could pull deposits from the traditional banking system.
They warn that this shift may weaken bank funding and increase systemic risks. These concerns have shaped opposition to interest-bearing stablecoins.
Crypto firms counter that yields are a core product feature. They argue that rewards attract users and support competition.
Industry groups also say yields do not always mirror bank interest products.
The disagreement has slowed progress on the Clarity Act. The bill passed the House last year but remains stalled in the Senate.
Stablecoin treatment remains a key unresolved issue.
Legislative Pressure and Policy Direction
The White House has pushed for faster progress on the bill. Officials believe delays could weaken U.S. leadership in digital assets.
Patrick Witt, the White House crypto advisor, has urged lawmakers to move forward.
The administration has signaled support for clearer crypto rules. President Donald Trump’s administration has promoted a more open approach to digital assets.
This meeting reflects that policy stance. Lawmakers on the Senate Banking Committee continue to negotiate.
However, differences between banks and crypto firms persist. The White House hopes today’s talks can narrow those gaps.
Related Reading: Crypto, Banks, and the White House Clash Over Stablecoin Rewards
Market Response and Global Context
Markets reacted cautiously to news of the meeting. Circle Internet shares rose about 6% after the announcement. Investors appear to expect progress on stablecoin rules.
Broader crypto markets remained mixed. Bitcoin traded below $80,000 after a recent 10-month low. Traders remain sensitive to regulatory developments.
Global regulators are also advancing stablecoin frameworks. Hong Kong plans to issue its first licenses in March.
The UAE has launched USDU under central bank oversight. These moves may influence U.S. policy discussions.
Source: https://www.livebitcoinnews.com/white-house-crypto-talks-today-stablecoin-yields-take-center-stage/
