White House Urges Stablecoin Deal, Sets the Deadline as Debate Continues

A second White House meeting between major banks and cryptocurrency industry leaders ended without a formal agreement on stablecoin yield rules, but participants described the discussions as more productive than prior talks.

According to sources cited by journalist Eleanor Terrett in an X post on February 11, both sides engaged in deeper negotiations over whether payment stablecoins should be allowed to offer rewards or yield to holders.

Banks Push Yield Prohibition Principles

Bank representatives entered the meeting with a written framework outlining ‘prohibition principles’ on stablecoin rewards. 

The proposal would ban financial or non-financial rewards tied to holding payment stablecoins, prevent marketing that implies stablecoins function like insured deposits, empower regulators to enforce penalties, and require study and rulemaking within two years of enactment.

A notable shift emerged in the language, allowing “any proposed exemption,” signaling that banks may now be open to limited carve-outs, a position they had previously resisted.

Banks in attendance included Goldman Sachs, JPMorgan, Bank of America, Wells Fargo, Citi, PNC, and U.S. Bank, alongside major trade associations.

Crypto Seeks Broader ‘Permissible Activities’

Crypto firms pushed for clearer and broader definitions of ‘permissible activities,’ which would determine when rewards tied to stablecoin usage could be allowed.

Industry attendees included representatives from Coinbase, Ripple, a16z, Paxos, the Blockchain Association, and the Crypto Council for Innovation.

Ripple’s Chief Legal Officer Stuart Alderoty said “compromise is in the air,” suggesting movement toward the middle ground.

Meanwhile, the White House, led by the President’s Crypto Council Executive Director Patrick Witt, reportedly urged both sides to reach an agreement by March 1.

Though there was no final resolution, the smaller meeting format appears to have narrowed disagreements. Further discussions should take place in the coming days, though it remains unclear whether another large-scale session will occur before the deadline.

For stablecoin issuers and users, the outcome could determine whether payment stablecoins remain strictly transactional tools or evolve into interest-bearing financial products.

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