White House Schedules Second Stablecoin Yield Talks Tuesday

• White House holds second meeting Tuesday to resolve stablecoin yield rules with banks and crypto groups.
• Banks warn stablecoin yield could drain deposits, while crypto firms say limits would stall innovation.
• Yield dispute now central to the Clarity Act, with pressure to reach compromise by month’s end.

The White House will host a second meeting Tuesday afternoon in Washington to address stablecoin yield payments. The talks involve crypto firms, banks, and policy staff, according to three sources who spoke to Crypto In America. Officials aim to narrow differences over whether crypto companies should pay interest on stablecoins, an issue now central to pending market structure legislation.

Banks and Crypto Groups Return to the Table

Following last week’s initial session, the upcoming meeting will again exclude company chief executives. Instead, senior policy staff from banks and industry groups are expected to attend. Sources said invitations have already gone to Bank of America, JPMorgan, and Wells Fargo.

Notably, PNC, Citi, and U.S. Bank may also participate. Press representatives for several firms declined comment, while others did not respond. A White House spokesperson also declined to comment on the meeting.

As before, crypto trade representatives are expected to attend. Banking groups likely include the Bank Policy Institute, the American Bankers Association, and the Independent Community Bankers of America. However, each side is expected to send fewer participants than last week.

Yield Dispute and Legislative Stakes

The main topic is whether crypto firms should offer yield on stablecoins. Banks argue that high-yield crypto accounts could pull deposits away, limiting lending capacity and increasing financial stress. Crypto firms counter that restrictions would protect banks while slowing innovation.

However, Treasury Secretary Scott Bessent acknowledged bank concerns during Senate Banking Committee testimony last Thursday. He said deposit volatility remains undesirable, adding that officials will work to prevent instability linked to stablecoin yield.

The dispute directly affects the Clarity Act, a crypto market structure bill awaiting action in the Senate Banking Committee. Chairman Tim Scott canceled a vote last month after Coinbase CEO Brian Armstrong publicly criticized provisions favoring banks.

Pressure Builds for a Compromise

According to Crypto In America, the White House now prioritizes resolving the yield issue over other regulatory debates. Blockchain Association CEO Summer Mersinger said the crypto industry meets almost daily to align on compromise proposals.

Meanwhile, a banking industry representative said banks are coordinating internally while maintaining a productive approach. White House Crypto Council Executive Director Patrick Witt has urged both sides to reach an agreement by month’s end.