The White House is preparing for a pivotal meeting on February 10 to advance discussions on stablecoin regulation, marking a significant step in shaping clear rules for the U.S. crypto market. This session will bring together staff-level officials, representatives from major banks, and crypto industry trade groups, a notable shift from earlier closed-door meetings that primarily involved government officials and policy experts.
The central and most contentious issue on the agenda is whether stablecoin issuers should be permitted to offer yield or interest to users. Traditional banks are strongly opposed, arguing that yield-bearing stablecoins could incentivize customers to move deposits away from the banking system, potentially weakening financial stability. Banking groups and Treasury officials have therefore advocated for strict limits, contending that only regulated banks should be allowed to offer interest-based products to protect consumers and the economy.
Crypto firms, in stark disagreement, counter that user rewards are a standard growth mechanism in digital finance. They warn that banning yields would stifle competition and grant traditional banks an unfair market advantage. Several industry participants have proposed targeted edits to draft legislative frameworks to create a more balanced and practical bill, though banking representatives have not yet signaled acceptance of these changes.
The renewed talks arrive at a critical juncture. For months, stablecoin debates were stalled by election-year politics and regulatory disagreements. The involvement of major banks is seen as a turning point, lending balance sheet expertise, compliance experience, and legitimacy to the process. Policymakers now increasingly view stablecoins—which power trillions in on-chain settlements and payments—as financial infrastructure rather than niche crypto products.
Global competitive pressure adds urgency to the timeline, as other regions have already implemented their own stablecoin rules. The outcome of these discussions could reshape payments infrastructure, market liquidity, and the strategic position of the U.S. dollar. Regulatory clarity is widely seen as a potential confidence booster for investors and institutions, especially amid recent market volatility. If a compromise is reached, it could accelerate long-delayed crypto legislation in the United States.
