Cryptocurrency Clash: Shocking Stablecoin Roadblocks at 2nd Crypto Banks

The White House hosted its second meeting on cryptocurrency with banking representatives which resulted in cautious optimism because no agreements were reached. The upcoming crypto market structure bill will maintain its current focus on stablecoin regulations because it establishes how U.S. regulators will monitor the digital asset sector.

Stuart Alderoty, Ripple’s chief legal officer, used the term “productive” to describe the session which indicates that potential agreement remains achievable. Lawmakers continue to push for bipartisan support to advance legislative activity because political energy currently exists.

The House approved the CLARITY Act but Senate progress has reached a standstill. Coinbase withdrew its support because of provisions that would prohibit yield payments which are linked to stablecoin transactions.

The decision created new tensions between cryptocurrency companies and traditional banks because the latter believe that these yields will endanger their financial stability.

Also Read: Malaysia to Pilot Stablecoins and Tokenized Deposits in 2026

Cryptocurrency vs Banks: Stablecoin Yield Debate

The core issue of the argument examines whether stablecoin holders should receive interest payments on their assets when they use third-party services such as cryptocurrency exchanges.

Banking groups claim these rewards could weaken bank deposits and destabilize lending systems that support local economies. As a result, they are pushing for strict prohibitions on all stablecoin yield payments.

Crypto advocates see the issue differently. Industry representatives argue that banning yield stifles innovation and places unnecessary limits on an evolving financial ecosystem.

Dan Spuller of the Blockchain Association explained that banks arrived at the meeting with broad demands which they would not compromise on but required all parties to follow.

BitGo CEO Mike Belshe urged both sides to avoid reopening settled debates. The GENIUS Act prevents stablecoin issuers from paying yield directly to customers so he wanted this existing law to proceed with market structure development. Belshe stated that the industry needs to establish regulatory clarity instead of continuing its previous conflicts.

Cryptocurrency Bill Talks: Balancing Innovation With Financial Stability

The American Bankers Association and Bank Policy Institute together with banking groups require additional discussions to proceed. The organizations emphasize that financial innovation needs a supporting framework which must protect both deposit security and economic stability.

The cryptocurrency market structure bill exists as an unfinished project which remains active but not completed. The discussions reveal that both political parties show interest while industry forces demand regulation and both sides understand that regulation will occur.

The question has evolved from cryptocurrency regulation to its current status. The political window will determine whether lawmakers achieve balance between innovation and stability for future outcomes.

Also Read: The GENIUS Act and MiCA: A Two-Tier Future for Stablecoins in 2026