The White House is scheduled to hold a second high-stakes meeting on Tuesday, February 10th, aiming to resolve a central conflict in proposed U.S. crypto market structure legislation: whether stablecoin holders should be allowed to earn yield. The gathering, a follow-up to a meeting held last week, will bring together senior policy staff from major traditional banks and representatives from the cryptocurrency industry, though company chief executives are not expected to attend.
Invitations have been extended to leading financial institutions including Bank of America, JPMorgan Chase, and Wells Fargo, with PNC Financial Services, Citigroup, and U.S. Bank also potentially invited. Representing the crypto sector, Coinbase Chief Legal Officer Paul Grewal is anticipated to be present. The core dispute pits cryptocurrency companies, who demand a flexible regulatory framework to offer returns to users through their issued stablecoins, against banks. The banking industry opposes yield-bearing stablecoins, arguing the practice creates risks akin to deposit-taking and could lead to significant deposit outflows, while also creating an unlevel regulatory playing field.
A parallel and contentious issue on the agenda is the Federal Reserve's proposed "skinny" master account model. This framework would grant eligible fintech companies limited access to the Fed's payment systems. The 44 comment letters submitted to the Fed revealed a stark sectoral divide. Crypto entities like stablecoin issuer Circle argued the model would "increase the overall resilience of the payment system." The Blockchain Payments Consortium, which includes infrastructure providers like Fireblocks, Polygon, Solana, and TON, stated it would "eliminate anti-competitive practices." However, some, like Anchorage Digital, found the proposal insufficient, criticizing the lack of direct access to Fed systems like ACH and the ability to hold reserve balances or earn interest.
The banking sector remains deeply skeptical. The American Bankers Association highlighted that many crypto entities "lack a long-term oversight history," while the Colorado Bankers Association warned of an "accelerated risk of fraud." Critic Dennis Kelleher, CEO of Better Markets, labeled the proposal "reckless favoritism." The Fed, after evaluating comments, is expected to begin the formal rule-making process, with Fed Board Member Christopher Waller hoping for a published regulation by the fourth quarter of this year.
Amid these regulatory discussions, Senate lawmakers have indicated that broader crypto market structure legislation could see advancement this year, positioning the outcome of the White House meeting as a potential bellwether for the future of U.S. digital asset regulation.
