White House Talks Advance but Stablecoin Yield Deal Still Out of Reach

TL;DR

• Banks and crypto firms met for a third time to negotiate stablecoin yield rules.

• No compromise was reached despite extended talks and firm White House pressure.

• Yield remains the last major obstacle to passing the crypto market bill.

• Crypto leaders called the meeting constructive and expect more sessions ahead.

The White House hosted a third closed-door meeting on Thursday as banking groups and crypto leaders continued work on the stablecoin yield dispute. The issue has blocked progress on the broader U.S. crypto market structure bill. Participants described the discussion as productive, though no final agreement was reached.

Ji Hun Kim, CEO of the Crypto Council for Innovation, said the meeting was “constructive.” He said it built on past talks to support a framework that protects consumers and maintains U.S. competitiveness. He added that more sessions will take place as both sides work toward a path forward.

Coinbase Chief Legal Officer Paul Grewal shared a similar view. He said the tone was cooperative and noted “more progress.” The meeting lasted well beyond its planned schedule as White House officials pressed participants to find common ground. Several attendees said phones were collected to keep the focus on negotiations.

Why Stablecoin Yield Remains the Central Obstacle

Stablecoin yield rules have become the key point holding back the legislation. The GENIUS Act, passed earlier, bans issuers from paying interest directly to holders. Yet it still allows platforms such as Coinbase to offer rewards on balances or certain activities.

Banks argue these rewards could pull deposits away from the industry and harm smaller institutions. They want a broad ban covering all forms of yield tied to holding or using stablecoins. Crypto firms say such a ban would limit innovation and restrict consumer choice.

During last week’s meeting, banks presented strict “prohibition principles” that opposed any type of reward. Crypto groups rejected those terms and later proposed a framework that supports yield under regulated conditions. The White House also suggested principles that would allow rewards for certain activities.

Congressional Path Still Uncertain Even with a Deal

Even if negotiators reach a compromise on yield, the path in Congress remains unclear. The Senate Banking Committee must still hold a hearing before voting on the bill. Many Democrats have raised concerns about other elements, including restrictions aimed at senior officials with crypto interests.

Democratic members also want open seats at the SEC and CFTC filled before major legislation moves. They have asked for stronger controls on illicit finance risks, including those linked to decentralized finance. These requests have not yet been met with offers that satisfy them.

Market observers expect more talks, though timelines remain uncertain. One participant said the next step depends on the banks. Another said conversations will continue but no date has been set.

Crypto Industry Watches Bill Odds as Pressure Builds

The Clarity Act remains a top priority for the crypto industry. Ripple CEO Brad Garlinghouse said he sees a strong chance of passage by April. Prediction markets have shifted widely, ranging from 54% to 85% during the past week.

Sources say yield and political concerns tied to President Donald Trump remain the largest barriers. Some estimate the chances of passage between 25% and 60%. The next draft from the Senate Banking Committee will show whether the yield dispute has narrowed enough for the bill to move.

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