White House Calls Banks and Crypto Leaders to Break Stablecoin Standoff

The White House is set to host a high-level summit on Monday, February 2, 2026, bringing together senior banking executives and cryptocurrency industry leaders in an effort to unlock stalled legislation governing U.S. digital asset markets.

The meeting, convened by the administration’s crypto council, is designed to resolve a growing impasse over the CLARITY Act, a sweeping market structure bill that has been stuck in the Senate for weeks.

At the center of the deadlock is a dispute over stablecoin rewards, a topic that has exposed deep divisions between traditional finance and crypto-native firms.

Stablecoin Rewards at the Heart of the Dispute

The core conflict revolves around whether crypto companies should be allowed to offer high-yield rewards on dollar-pegged stablecoins. Banking groups argue that these rewards function like unregulated interest-bearing deposits, warning they could accelerate capital outflows from traditional banks and undermine financial stability. From the banking sector’s perspective, generous stablecoin yields risk creating an uneven competitive landscape without the safeguards of FDIC insurance or established capital requirements.

Crypto firms see the issue differently. Companies such as Coinbase argue that stablecoin rewards are a critical tool for user adoption, liquidity formation, and innovation in on-chain financial services. Limiting these incentives, they contend, would slow U.S. competitiveness just as global markets are accelerating adoption of blockchain-based finance.

Executives from Coinbase are expected to attend alongside representatives from major industry trade groups, including the Blockchain Association and the Crypto Council for Innovation. Senior figures from the traditional banking sector will also be present, underscoring the administration’s goal of forcing a direct negotiation between the two camps.

Legislative Pressure Builds Around the CLARITY Act

Momentum behind the CLARITY Act faltered in mid-January 2026 when Coinbase CEO Brian Armstrong publicly withdrew support for the draft legislation. His objection centered on proposed restrictions targeting stablecoin reward programs, which he argued would materially weaken the bill’s usefulness for the crypto industry.

The Trump administration has made passage of the CLARITY Act a priority, framing it as essential for maintaining U.S. leadership in digital asset markets. Officials view regulatory clarity as a prerequisite for keeping trading platforms, issuers, and liquidity onshore rather than pushing innovation abroad.

According to sources familiar with the process, the upcoming summit is meant to produce at least a preliminary compromise. If talks fail to narrow differences ahead of Monday, the administration may delay the meeting rather than host a public stalemate.

Why the Stakes Are High

The tension reflects a broader structural issue: the yield gap between traditional bank deposits and crypto-based rewards. While standard savings accounts and certificates of deposit offer relatively modest returns under heavy regulation, stablecoin programs often provide higher yields driven by on-chain activity and reserve asset income. Banks warn this dynamic could trigger “deposit flight,” while crypto firms argue it represents a natural evolution of financial infrastructure.

For lawmakers, the challenge lies in balancing innovation with systemic risk. A compromise on stablecoin rewards could determine whether the CLARITY Act advances, or remains frozen, shaping the regulatory environment for U.S. crypto markets well beyond 2026.

As Washington steps in to broker talks, the outcome of this summit may signal whether traditional finance and crypto can coexist under a single regulatory framework, or whether the divide between the two will continue to widen.

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