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The White House will convene senior executives from major cryptocurrency exchanges and traditional banks on February 2, 2026, in an urgent bid to resolve a bitter dispute over stablecoin yield offerings that has brought Senate negotiations on landmark digital asset legislation to a standstill.
The high-stakes meeting, organized by the White House crypto policy council, aims to bridge the deepening divide between crypto firms fighting to preserve interest and rewards on dollar-pegged stablecoins and banks warning that such features could destabilize the traditional financial system by draining insured deposits.
At the heart of the standoff is the question of whether crypto platforms should be allowed to offer interest, yield, or other rewards on stablecoin holdings services that many exchanges use to attract customers.
Crypto firms argue that these features are fundamental to competitiveness and innovation. However, banks caution that permitting third parties to provide such returns could divert deposits from insured lenders and jeopardise the stability of the financial system.
Industry executives have said the looming clash reflects broader economic and structural tensions between two powerful sectors of the U.S. financial system:
“Any lasting and effective market structure legislation must reflect bipartisan engagement and collaboration on both sides of the aisle.”
Summer Mersinger, CEO of the Blockchain Association, in a statement supporting the White House’s mediation efforts.
Banks and their advocates have pushed to tighten the bill’s language around stablecoin yields, arguing that stringent limits are necessary to protect traditional deposit bases and maintain the health of the banking sector.
The dispute has already had political consequences: after Coinbase CEO Brian Armstrong publicly withdrew support for an earlier version of the CLARITY Act in mid-January, the Senate Banking Committee postponed its markup of the bill.
With legislative momentum waning, the White House’s February 2 summit represents a rare direct intervention by the executive branch to reconcile differences in real time.
Sources familiar with the discussions told Reuters that officials hope executives from both industries can find common ground and chart a path forward.
Although the White House declined comment on the private preparatory discussions, the scheduling of the summit reflects the administration’s eagerness to see the long-awaited bill advance:
“The failure to reach regulatory clarity risks pushing digital assets into a prolonged ‘show me’ period.”
Matt Hougan, Chief Investment Officer, Bitwise Asset Management, warns industry stakeholders about the consequences of further delay.
Beyond stablecoin yield provisions, the CLARITY Act encompasses broader structural questions about how digital assets are classified and which federal agencies, such as the SEC and CFTC, have authority over them.
Regulatory clarity: A bipartisan compromise on the CLARITY Act could finally provide legal certainty for digital asset firms that have operated under shifting enforcement policies.
Market innovation: How stablecoin yields are regulated will affect products ranging from decentralized finance (DeFi) protocols to centralised exchange offerings.
Banking sector dynamics: Limits on stablecoin rewards could insulate traditional banks’ deposit bases, but at the cost of constraining competition from fintech and crypto players.
The crypto market, already sensitive to policy signals, has been watching closely. Delays in legislation have contributed to periods of uncertainty, and renewed negotiations may influence investor sentiment and institutional engagement.
As lawmakers and executives prepare for February’s talks, the White House’s high-profile role may signal that digital asset policy, long contested across federal agencies and industry lobbies, is entering a decisive phase.
