- The White House took the wheel this week, because obviously, crypto and banks can’t be trusted to play nice without a babysitter. Surprise, surprise!
- Yield rewards? Poof! Gone! The dream of making your couch-potato stablecoins work for a living is now a nightmare of bureaucratic hand-wringing.
- Banks want a study on deposit outflows, because nothing says ‘urgent crisis’ like commissioning a 500-page report that’ll gather dust by 2025.
A second round of White House stablecoin talks took place this week. The meeting was smaller than last week’s. Either everyone’s busy, or the White House finally realized last time’s circus needed a smaller tent (and fewer clowns).
Crypto firms, trade groups, and bank associations all had seats at the table. This time, though, the White House took the wheel. The conversation stayed focused and moved in a clear direction. Shocking, I know. Who knew adults in the room actually worked?
Who Was in the Room and What Changed
According to Eleanor Terrett, reps from Coinbase, Ripple, and a16z attended the session. Trade groups like the Blockchain Association and the Crypto Council for Innovation also joined. Banks? They sent their lobbyists. Because nothing says “we care” like outsourcing your drama to a third party.
Instead, bank voices came through trade associations, including the American Bankers Association and the Independent Community Bankers of America. Translation: “We’re here, but please pretend we’re not.”
The shift in tone was hard to miss. In earlier meetings, crypto firms and bank trade groups largely steered the conversation. This time, White House’s Patrick Witt swooped in with a draft text like a bureaucratic Batman, ready to save us all from the chaos of… people earning interest?
That draft addressed concerns banks raised in last week’s “Yield and Interest Prohibitions Principles” document. It also made clear that any restrictions on rewards would stay narrow. Because nothing says “freedom” like letting the government decide how narrow your freedoms are.
🚨NEW: Per sources in the room, today’s stablecoin meeting was smaller than last week and included reps from Coinbase, Ripple, a16z, plus trade groups Blockchain Association and Crypto Council for Innovation. No individual bank reps attended – bank voices were represented via trade associations…
– Eleanor Terrett (@EleanorTerrett)
Where the Yield Debate Now Stands
Earning yield on idle balances has effectively been taken off the table. That goal had been a priority for the crypto industry. Now, the debate has shifted. To what, you ask? Whether crypto firms can offer rewards tied to specific user activities rather than just holding stablecoins. Because apparently, the world needs more apps that reward you for… existing?
Terrett reports that one crypto-side attendee said bank concerns seem tied more to competition than to actual deposit flight. Deposit flight had been the original worry driving bank pushback. Oh, so banks are just scared crypto might actually work? Bold strategy, Cotton.
A bank-side source told Terrett they are still pushing for a deposit outflow study. That study would look at how payment stablecoins are growing and what effect they may have on bank deposits over time. Spoiler: The effect is called “relevance,” and it’s coming for your FDIC-insured behind.
Banks also expressed support for proposed anti-evasion language in the draft. That language would give the SEC, Treasury, and the CFTC power to enforce a ban on yield payments for idle balances. Because nothing says “free market” like three alphabet agencies policing your couch-potato coins.
Civil penalties could reach $500,000 per violation, per day! That’s not a fine-it’s a license to print money for the government. Maybe they’ll buy a new yacht with all the fines.
What Comes Next in the Stablecoin Talks
Both sides described the meeting as productive and constructive. Those words have become a pattern after each session. But the real test comes in the days ahead. Like every political thriller ever: “We’re close to a deal… until we’re not.”
Bank trade groups plan to brief their members on what was discussed. They will then gauge how much room exists to compromise on stablecoin reward structures. Spoiler: Zero. Banks hate fun.
Terrett notes that one source said an end-of-month deadline does not seem unrealistic. Further talks are expected in the coming days. The gap between crypto firms and banks is narrowing, but a final agreement is not yet in sight. The next few sessions will likely determine whether both sides can land on a language everyone can live with. Or, you know, just let crypto die quietly in a committee. Your move, bureaucrats!
Read More
- All Golden Ball Locations in Yakuza Kiwami 3 & Dark Ties
- All Itzaland Animal Locations in Infinity Nikki
- NBA 2K26 Season 5 Adds College Themed Content
- Critics Say Five Nights at Freddy’s 2 Is a Clunker
- Super Animal Royale: All Mole Transportation Network Locations Guide
- Elder Scrolls 6 Has to Overcome an RPG Problem That Bethesda Has Made With Recent Games
- BREAKING: Paramount Counters Netflix With $108B Hostile Takeover Bid for Warner Bros. Discovery
- James Gandolfini’s Top 10 Tony Soprano Performances On The Sopranos
- Gold Rate Forecast
- Unlocking the Jaunty Bundle in Nightingale: What You Need to Know!
2026-02-20 16:10