A second White House meeting on stablecoin yield rules ended without a deal, even as banks and crypto firms described the talks as productive. The session took place Tuesday in Washington as both sides tried to narrow disputes holding up the CLARITY Act, with the White House pressing for a resolution by March 1.
Banks opened the door slightly, but kept a broad ban in place
According to Eleanor Terrett, participants came in better prepared than they were at the first meeting. Banking representatives presented written “prohibition principles” laying out which stablecoin reward terms they consider acceptable and which they do not. One change stood out: the document included language allowing “any proposed exemption”. That was a shift from the earlier refusal to discuss exemptions tied to transaction-based rewards. It was limited, but it was still a concession.
The broader banking position did not change. The same principles still called for a general ban on stablecoin yield, including any financial or non-financial consideration linked to holding or using payment stablecoins. Banks argued that reward programs could drive deposit flight and weaken the traditional lending model. Trade groups in attendance included the American Bankers Association, Bank Policy Institute, and ICBA.
Crypto firms pushed for wider room under “permissible activities”
Crypto industry representatives focused heavily on how “permissible activities” should be defined. Their goal was wider language that would allow rewards connected to account usage. Banks took the opposite view and argued for narrower wording that would restrict those arrangements. That gap remained unresolved by the end of the meeting.
Ripple Chief Legal Officer Stuart Alderoty wrote on X that the session was productive and said “compromise is in the air” as discussions continue. He attended alongside Coinbase Chief Legal Officer Paul Grewal, a16z’s Miles Jennings, and executives from Paxos and the Blockchain Association. Blockchain Association CEO Summer Mersinger also described the talks as constructive, while Ji Kim of the Crypto Council for Innovation confirmed that engagement is continuing.
White House wants a deal before March 1
The meeting was led by Patrick Witt, executive director of the President’s Crypto Council, with Senate Banking Committee staff also present. Attendance was smaller than in the first White House session, a notable change as negotiations moved into a more focused stage. Even so, no final compromise emerged.
The fight over stablecoin yield remains a barrier to Senate Banking Committee action on the Digital Asset Market Clarity Act. The bill passed the House last year, but this issue is still unsettled. More talks are expected in the coming days, though it is not clear whether another large meeting will happen before the end of the month.