White House Stablecoin Yield Talks Advance with Banks: Progress Made, Deal Still Eludes Crypto Leaders

In the latest push for U.S. crypto rules, a key White House meeting brought bankers and crypto experts together. They made on , but no final deal came out of it. This is big news for the blockchain world, as clear rules could unlock huge growth.

What Happened at the White House Meeting?

The gathering on Thursday was the third in a row. It focused on a big fight: Can stablecoins offer yields, like rewards for holding them? Banks say no, because it hurts their deposit business. Crypto firms want yes, to give users better options on platforms like Coinbase.

The talks ran long, past the planned two hours. White House staff even took phones to keep everyone focused. Sources say officials pushed hard for common ground.

Today’s constructive meeting at the White House reflects the importance of focused working engagement.

Ji Kim, CEO of the Crypto Council for Innovation, shared this view. He said the chat built on past meetings to protect U.S. consumers and boost competition. More talks are coming.

Paul Grewal, Coinbase’s top lawyer, posted on X: The dialogue was constructive, tone cooperative, and they made more .

Why Are Such a Hot Issue?

Stablecoins are crypto tied to the dollar, like USDC or USDT. They stay steady in value. Yields mean earning interest on them, similar to savings accounts. Crypto apps offer this to attract users.

Banks see it as a threat. The GENIUS Act already lets crypto firms do this. Now, bankers want the new Digital Asset Market Clarity Act to ban all rewards. They brought a tough document last time, blocking easy compromise.

An earlier idea was to allow yields only on active use, like trading or payments. Banks said no to all yields.

White House Leans Toward Some Yields

Insiders say the White House favors letting some exist. They told banks it’s time to move the market structure bill forward. This could help end the deadlock.

Bigger Hurdles Ahead for Crypto Legislation

Even if banks and crypto agree on yields, Congress must act. The Senate Agriculture Committee already approved its version on party lines. The Banking Committee needs a hearing next.

Democrats want changes: Ban top officials from big crypto stakes (aimed at figures like Trump). Fill empty spots at CFTC and SEC with Democrats. Add strong rules against money laundering in DeFi.

Republicans and the White House have not met these demands yet. No bipartisan deal means no law.

Why This Matters for Blockchain and Crypto

• Clarity Boosts Investment: Clear U.S. rules would make America a crypto hub. Billions in funds could flow in.
• Stablecoin Growth: Yields make stablecoins more appealing than bank accounts with low rates.
• Bank-Crypto Bridge: A deal shows traditional finance warming to blockchain.
• DeFi Safeguards: Tighter illicit finance rules could build trust without killing innovation.

The Clarity Act is crypto’s top goal. Once passed, expect a boom in trading, apps, and blockchain projects.

What’s Next in ?

More meetings are planned. If compromise happens on yields, it clears a path to Senate votes. Watch for Democratic buy-in and committee hearings.

For now, is real, but the deal waits. This saga shows how crypto is shaping U.S. finance. Stay tuned as these evolve.

Update: Insights from recent meetings highlight growing momentum toward resolution.