A high-profile meeting between major U.S. banking representatives and cryptocurrency industry leaders at the White House ended without a consensus on stablecoin regulation, underscoring deep divisions that continue to stall federal crypto legislation. The session, focused on how stablecoins should be regulated—especially whether yield or rewards can be offered—was described by participants as more productive than previous talks, yet still failed to produce a deal.
The meeting, which brought together executives from crypto firms such as Coinbase, Ripple, and industry groups alongside representatives from major banks including Goldman Sachs, JPMorgan, and others, was aimed at resolving disagreements over provisions in the stalled Digital Asset Market Structure or “CLARITY” legislation. Stablecoin yield and rewards—where holders receive interest-like returns—remained the central sticking point.
Banking groups presented written “prohibition principles” in the talks, emphasizing a broad ban on any form of financial or non-financial benefits tied to stablecoin holdings out of concern that such yields could draw deposits away from traditional banks and undermine financial stability. Crypto advocates objected to overly restrictive language and pushed for more flexible definitions that would allow certain activity-based incentives.
Observers noted that while neither side budged on their core positions, there were signs of incremental progress. Sources reported that bankers included language about “any proposed exemptions” in their document—something previously absent—which suggests a willingness to entertain limited compromise. Both sides described the session as constructive and indicated that further negotiations are planned, with the White House urging an agreement by early March.
The inability to resolve the dispute has broader implications for the future of U.S. crypto regulation. The CLARITY Act and related market structure bills sought to clarify stablecoin rules and establish regulatory boundaries between agencies such as the SEC and CFTC. However, disagreements between traditional financial institutions and the crypto industry over stablecoin yield and other provisions have contributed to legislative delays, leaving the sector in regulatory limbo.
Crypto executives expressed optimism despite the impasse. Ripple’s chief legal officer noted that “compromise is in the air,” and others reiterated bipartisan momentum behind sensible legislation. However, until clear terms on stablecoin rewards and other key points are agreed upon, progress on the market structure bill will likely remain uncertain.
Disclaimer: This article is based on current news reports and should not be considered financial or legal advice.