Key Highlights
- A second, closed-door White House meeting on February 10, 2026, between major banks and crypto firms made “productive” progress on the issue of allowing yields on stablecoins
- Banking giants like JPMorgan and Bank of America argue that non-bank firms offering interest on stablecoins are unlicensed banking
- On the other hand, crypto companies like Coinbase and Ripple see it as important for user adoption
In the second meeting at the White House on February 10, top executives from America’s biggest banks and leading cryptocurrency firms discussed stablecoins.
The main part of this discussion is whether companies like Coinbase or Ripple should be allowed to get yield on stablecoins, just as a bank pays you interest on a savings account.
The meeting, held on February 10, is the second of its kind. According to the reliable source, this meeting was “productive.”
This was chaired by Patrick Witt, the Executive Director of the President’s Council of Advisors for Digital Assets, and included staff from the Senate Banking Committee. These high-level participants are showing how seriously the administration is treating the digital assets, which have held up a major piece of financial legislation for months.
Arguments Between Banks and Crypto Leaders on Stablecoin Yield
In this meeting, there was an intense debate. Major banks, including JPMorgan Chase, Bank of America, and Wells Fargo, argued that paying interest on stablecoin is a banking activity. They say only licensed banks should do it. This allows tech companies to enter this space and could gain hundreds of billions of dollars from traditional accounts. According to them, this could damage financial stability.
On the other side, the crypto firms have very different views on this matter. Representatives from Coinbase, Ripple, Paxos, and venture capital firm Andreessen Horowitz (a16z) stated that these rewards are important.
They affirmed that providing small yields or cashback rewards is very important. According to them, this will help them to get everyday people to use stablecoins and will increase healthy competition.
According to the crypto firms, they view the banks’ stance as a simple protective measure, which can damage the financial innovations.
Compromise is In the Air
The major highlight of this meeting was that the banking group cited a formal document. It proposed principles for banning most stablecoin yield, which was their demand.
However, for the first time, they hinted that they might accept very limited exceptions. Instead, they are trying to focus on defining what a “permissible activity” is and what is not.
For example, banks might allow a reward for completing a transaction, but not for simply holding the stablecoin in a wallet. This is where the debate is going on.
While no final agreement was made, the discussion sounds positive. Ripple’s Chief Legal Officer, Stu Alderoty, stated after the meeting that “compromise is in the air.” The White House has created a deadline and is asking both sides to find a solution by March 1. Another round of talks is expected soon.
The discussion will create the future of the CLARITY for Payment Stablecoins Act, which is a bipartisan bill waiting in Congress.
Also Read: Hong Kong Activates Stablecoin Law, Begins Licensing Process
