TLDR
- White House held second meeting in two weeks between crypto and banking representatives to discuss stablecoin provisions in market structure bill
- Banking groups arrived with principles document calling for total ban on stablecoin yield payments instead of compromise proposals
- Crypto industry representatives from Coinbase, Ripple, a16z, and others expressed optimism despite lack of agreement
- Banks argue stablecoin yield payments threaten bank deposits and undermine the banking system
- Senate Banking Committee Digital Asset Market Clarity Act remains stalled over yield payment disagreement
The White House hosted its second meeting in two weeks between cryptocurrency and banking industry representatives. The goal was to reach an agreement on stablecoin provisions in pending market structure legislation. The meeting ended without a resolution.
After a first @WhiteHouse meeting last week, today’s follow-up shifted from broad discussion to serious problem-solving.
This was a smaller, more focused session.
Stablecoin rewards were front and center. Banks did not come to negotiate from the bill text, instead arriving with… https://t.co/YDaB1fTNJy
— Dan Spuller (@DanSpuller) February 10, 2026
President Donald Trump’s crypto advisers organized the Tuesday gathering. They instructed both sides to arrive ready to compromise. However, banking representatives brought a principles document calling for a complete ban on stablecoin yield payments.
The document obtained by CoinDesk proposed prohibiting “any form of financial or non-financial consideration” tied to stablecoin ownership. This stance disappointed crypto negotiators who came prepared to discuss potential compromises.
Ripple legal chief Stuart Alderoty attended the meeting. He posted on social media that the session was “productive” and that “compromise is in the air.” He urged lawmakers to act while momentum exists for crypto market structure legislation.
The crypto industry delegation included executives from major companies. Coinbase, Ripple, a16z, the Crypto Council for Innovation, and the Blockchain Association sent representatives. The White House reduced the number of participants from the previous week’s larger gathering.
Dan Spuller from the Blockchain Association described the meeting as “a smaller, more focused session” with “serious problem-solving.” He noted that stablecoin rewards were the central topic. However, he said banks “did not come to negotiate from the bill text.”
Banking Industry’s Position
Three major banking groups participated in the discussions. The American Bankers Association, Bank Policy Institute, and Independent Community Bankers of America issued a joint statement. They said “ongoing discussions” were needed to advance the legislation.
The banking groups argue that stablecoin yield payments pose risks to traditional bank deposits. They claim these payments could drive customers away from banks. This deposit flight could reduce funds available for community lending and economic activity.
Their principles document requested regulatory enforcement mechanisms. It also called for a government study examining how stablecoin activity affects bank deposits. The document stated stablecoin activity “must not drive deposit flight that would undercut Main Street lending.”
Crypto Industry Response
Despite the lack of progress, crypto representatives maintained an optimistic tone. Blockchain Association CEO Summer Mersinger said her group was “encouraged by the progress being made.” She noted stakeholders remained “constructively engaged on resolving outstanding issues.”
Ji Kim, CEO of the Crypto Council for Innovation, thanked the banking industry “for their continued engagement.” He said “the important work continues” on reaching an agreement.
BitGo CEO Mike Belshe suggested both sides should stop revisiting the GENIUS Act. That earlier legislation banned stablecoin issuers from paying yield directly. He argued the market structure bill should move forward separately from yield payment debates.
Legislative Background
Congress is working to pass comprehensive crypto market structure legislation. The House of Representatives passed the CLARITY Act in July. However, the Senate Banking Committee has not secured enough bipartisan support to advance similar legislation.
The effort lost momentum last month when Coinbase withdrew its support. The exchange opposed provisions prohibiting all yield payments tied to stablecoins. This disagreement has become the main obstacle to advancing the Digital Asset Market Clarity Act.
White House crypto adviser Patrick Witt led both recent meetings. He described the first gathering on February 2 as “constructive” and “fact-based.” Witt has predicted negotiators will find common ground soon.
The Senate faces additional challenges beyond policy disputes. The chamber is dealing with budget issues, including funding for the Department of Homeland Security. Senate Democrats have also demanded provisions addressing government officials’ crypto involvement and stronger protections against illicit finance.
The Senate Banking Committee needs a majority vote before the full Senate can consider the legislation. Time is running short as the chamber approaches lengthy breaks before midterm elections. Banking representatives maintained their position against stablecoin yield payments at Tuesday’s meeting.
