White House Crypto Summit: Coinbase, Ripple, and Banks Seek Compromise on Stablecoin Yield Rules
Washington, D.C. – February 1, 2026
Tomorrow, the White House will host a high-stakes meeting between leading cryptocurrency firms, major banks, and regulators in an effort to break a deadlock that has stalled landmark digital asset legislation in Congress.
The summit, organized under the administration’s recently established crypto council, aims to resolve a contentious dispute over stablecoin “yield” or rewards paid to holders. The outcome could determine whether the long-awaited CLARITY Act—a comprehensive bill designed to provide regulatory clarity for cryptocurrencies in the U.S.—finally advances through Congress.
# The Core Dispute: Stablecoin Yields
At the heart of the impasse is a disagreement over whether stablecoin holders can receive interest-like returns.
Current federal rules prohibit stablecoin issuers from directly paying interest on their tokens, a restriction rooted in earlier legislation such as the GENIUS Act. However, a widely used workaround allows third-party platforms—primarily crypto exchanges—to distribute yield generated from the reserves backing stablecoins (typically U.S. Treasuries and other low-risk assets) directly to users.
Banks argue this practice gives crypto firms an unfair competitive advantage. They contend that yield-bearing stablecoins could siphon hundreds of billions of dollars in deposits away from traditional banking institutions, threatening financial stability. Crypto industry representatives counter that these rewards are essential for user adoption and innovation, and that eliminating them would drive activity offshore.
Key Players at the Table
The closed-door meeting is expected to include senior executives and lobbyists from:
- Crypto firms: Coinbase, Ripple, Circle (issuer of USDC), Kraken, and representatives from major industry trade associations.
- Traditional finance: Executives from leading banks and banking trade groups.
- Government: White House officials from the crypto council, along with representatives from key regulatory agencies.
Sources familiar with the planning describe the gathering as a “last-ditch effort” to forge a compromise before momentum on the CLARITY Act fades.
Broader Implications
Passage of the CLARITY Act would establish a clear federal framework for digital assets, including rules for stablecoin issuance, custody, market structure, and consumer protection. Supporters say it would cement the United States’ position as a global leader in cryptocurrency innovation under the current administration’s pro-crypto stance.
Failure to reach agreement on the yield issue, however, could keep the bill bottled up in Congress indefinitely, leaving the industry in regulatory limbo and potentially pushing more activity to jurisdictions with clearer rules.
Industry observers note that both sides have incentives to compromise: banks want guardrails to protect their deposit base, while crypto firms seek the legal certainty that only federal legislation can provide.
As the meeting approaches, all eyes in the crypto and financial worlds will be on Washington to see whether tomorrow’s discussions can bridge the divide—or whether the stalemate will persist.