Crypto Bill Negotiations at the White House: What does "Remain" mean in Stablecoin discussions?

Negotiations on the legal framework for the cryptocurrency market in the U.S. are entering a critical stage, but deep disagreements over stablecoin regulation continue to prevent a comprehensive agreement. The White House recently held its second meeting in two weeks between industry leaders in crypto and banking representatives; however, the discussion did not result in a final compromise on key issues. This event reflects the current situation, where both sides remain on their firm stances, especially regarding how to handle stablecoin yields within broader market policy.

Stuart Alderoty, one of the participants, described the discussion as constructive and full of potential. He wrote on X: “Today’s White House meeting demonstrated a spirit of compromise. The momentum is clear, bipartisan support remains strong for sensible crypto market legislation. Action is needed while the window of opportunity remains open.”

Stablecoin Yields: Main Obstacle in Negotiations

The primary reason negotiations are stalled is disagreement over whether stablecoins should be allowed to generate yields for users. The House passed the CLARITY Act last July, but the bill is awaiting review in the Senate, where bipartisan support has yet to be strong enough to push it through. The situation is further complicated by Coinbase’s decision to withdraw support, citing concerns over provisions that could ban all interest payments related to stablecoins.

The banking sector argues that allowing stablecoins to generate yields—especially through third-party platforms like crypto exchanges—could threaten the stability of traditional bank deposits and weaken the entire financial system. This remains a tense point between the two sides—reform advocates want to create space for innovation, while the banking industry sees it as a potential threat.

According to Dan Spuller, the recent meeting was “smaller and more focused,” mainly centered on finding solutions to the core issues. However, he noted that banking representatives did not come to negotiate detailed bill language but instead offered broad principles, which creates a significant obstacle to progress.

Industry Divided: Banks and Crypto Call for Continued Dialogue

Three major U.S. banking associations—the American Bankers Association, the Bank Policy Institute, and the Independent Community Bankers of America—issued a joint statement emphasizing that “discussions are ongoing” and are necessary. These organizations affirm that any legal framework must support innovation but not come at the expense of financial safety or deposit protection. The consistent message from the banking bloc is that they are willing to continue negotiations but under clear conditions.

Meanwhile, the crypto industry also shows determination in these negotiations. Patrick Witt described the first meeting in early February as “constructive” and “truth-based,” indicating both sides are seeking common ground. However, the gap remains too wide for a final compromise.

Separating Market Structure and Yields: A Possible Path for Crypto Policy?

Some crypto leaders, notably Mike Belshe, have proposed a potential solution: separate the debate over stablecoin yields from broader market reforms. They argue that the GENIUS Act has directly addressed the issue of stablecoin yields, and there is no need to continue debating this topic within the current legislative reform. “That fight is over,” Belshe stated. “Market structure has nothing to do with stablecoin yields and should not be delayed further.”

This proposal could be a way to overcome the current deadlock, allowing lawmakers to focus on other aspects of legislation where there is more common ground.

Outlook and Challenges Ahead

While these discussions indicate ongoing engagement from regulators, banks, and industry players, the lack of an agreement underscores the profound challenges lawmakers face. They must balance the need for technological innovation in blockchain, the protection of the traditional financial system, and consumer safety.

The clear takeaway is: both sides remain willing to talk, but they need to identify areas where genuine compromise can occur. The upcoming White House meeting will be a real test of whether crypto market legislation can be finalized in the near future.