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The White House is convening banks and crypto executives this week to resolve a dispute over whether digital asset firms should be allowed to offer interest-like yields on stablecoins, an issue that has stalled Senate action on what could become the most significant overhaul of U.S. crypto regulation to date.
The meeting, first reported by Reuters, comes as lawmakers, regulators, and industry groups clash over whether crypto firms should be allowed to offer interest-like rewards, commonly referred to as stablecoin yield, on dollar-pegged digital tokens.
According to three industry sources cited by Reuters, the meeting hosted by the White House’s crypto council will bring together executives from major trade associations representing both sectors.
The goal is to explore a compromise that would allow Congress to move forward with legislation that has stalled in the Senate amid growing concerns about financial stability, competition for bank deposits, and the scope of the stablecoin regulatory framework established last year.
The White House did not immediately respond to requests for comment, and the sources spoke on condition of anonymity because the discussions are private.
Still, the meeting underscores the Trump administration’s urgency in pushing crypto legislation forward after President Donald Trump openly courted crypto industry support during his campaign and pledged to promote wider adoption of digital assets.
At the heart of the disagreement is how the proposed law would handle interest and rewards paid on stablecoins cryptocurrencies designed to maintain a one-to-one peg with the U.S. dollar. Under the existing stablecoin regulatory framework passed in 2025, issuers of stablecoins are prohibited from directly paying interest on the tokens they issue.
However, banks argue the law left a loophole that would allow third parties, such as crypto exchanges, to offer stablecoin yield to customers.
Crypto firms say such rewards are essential to their business models and competitiveness. Banks, by contrast, warn that allowing stablecoin yield could siphon deposits away from insured lenders, undermining a key source of funding for the traditional financial system.
The Senate Banking Committee had been scheduled to debate and vote on the broader digital asset bill known as the Clarity Act earlier this month. That session was abruptly postponed, partly due to unresolved concerns over the stablecoin regulatory framework and the treatment of yield-bearing products.
According to two people familiar with the discussions, disagreements among Senate Republicans over stablecoin provisions also raised doubts about whether the bill had enough votes to advance.
Crypto industry representatives have welcomed the White House’s intervention, framing it as a necessary step toward regulatory certainty. Summer Mersinger, chief executive of the Blockchain Association, which represents major crypto firms including Coinbase, Ripple, and Kraken, confirmed her group’s participation in the talks.
“We look forward to continuing to work with policymakers across the aisle so Congress can advance lasting market structure legislation and ensure the United States remains the crypto capital of the world,” — Summer Mersinger, CEO, Blockchain Association, said in a statement.
Cody Carbone, CEO of The Digital Chamber, another influential crypto trade group, also praised the White House’s role in convening the discussions.
“The White House deserves credit for pulling all sides to the negotiating table,” — Cody Carbone, CEO, The Digital Chamber, said, highlighting the administration’s attempt to bridge the divide over the stablecoin regulatory framework.
Banking groups, including the American Bankers Association and the Independent Community Bankers of America, are expected to argue that unchecked stablecoin yield could destabilize the banking system.
A recent report from Standard Chartered estimated that stablecoins could draw as much as $500 billion in deposits out of U.S. banks by the end of 2028 if adoption accelerates under a permissive stablecoin regulatory framework.
The Clarity Act represents the culmination of years of lobbying by crypto firms seeking federal rules tailored to digital assets. Industry leaders argue that existing securities and commodities laws are ill-suited to cryptocurrencies and that a clear stablecoin regulatory framework is critical for companies operating in the United States.
The House of Representatives passed its version of the bill in July, raising hopes that bipartisan momentum could carry it across the finish line. However, the Senate delay has exposed how divisive the stablecoin yield issue remains, even as global competitors move ahead with their own regulatory regimes.
The Trump administration’s involvement reflects broader political calculations as well. By stepping in to broker talks, the White House is signaling its willingness to balance innovation with financial stability while keeping the U.S. competitive in global crypto markets.
The administration’s crypto council has emphasized that the meeting is intended as a working session rather than a high-profile showdown, focusing on technical details of the stablecoin regulatory framework rather than public posturing.
If a compromise can be reached, lawmakers could revive Senate consideration of the bill in the coming weeks. Failure to do so, however, risks prolonging regulatory uncertainty for both banks and crypto firms, potentially pushing innovation offshore and leaving unresolved questions about stablecoin yield, consumer protection, and systemic risk.
For now, the outcome of the White House meeting remains uncertain. But with billions of dollars in deposits, market structure, and the future of the stablecoin regulatory framework at stake, the discussions are shaping up as a pivotal moment for U.S. crypto policy.
