Key Highlights
- The White House has scheduled a high-priority meeting for Tuesday, February 10, 2026, which is likely to discuss yield rewards on stablecoins
- The discussion is expected to happen around loopholes in the 2025 GENIUS Act that allow crypto exchanges like Coinbase offer rewards
- This is part of ongoing legislative efforts for the crypto sector, including the Senate’s CLARITY Act
The Trump administration is working hard to progress a major development over cryptocurrency rules. According to Eleanor Terrett, high-stake meeting is scheduled for February 10. This discussion is mainly focused on whether stablecoin holders can earn yield rewards.
Banks Could Join Stablecoin Negotiations for the First Time
This new round of talks is a direct representation of traditional banks, which will join the discussions for the first time. They will sit alongside executives from major crypto industry groups.
The dispute has sparked a discussion on market-structure legislation for months. It is expected that a provision in the landmark GENIUS Act of 2025. This allows third parties, such as exchanges like Coinbase, to offer incentives on USD-pegged stablecoins, while prohibiting the issuers themselves from paying direct interest.
Banks view this as a dangerous loophole. Industry analyses warn it could trigger a massive change of deposits from traditional bank accounts into crypto-based stablecoin products. The estimates range from $500 billion to $1 trillion by 2028.
Bank representatives argue these outflows threaten their ability to lend and could destabilize the financial system.
They argue that allowing rewards boosts crucial innovation and healthy competition in digital finance, accusing traditional banks of trying to stifle progress to protect their own business models.
Tuesday’s meeting comes just days after a prior session on February 2 ended without a deal. That meeting, hosted in the Eisenhower Executive Office Building and led by President Trump’s crypto adviser Patrick Witt, was described by attendees as constructive but ultimately deadlocked.
Following that session, the White House reportedly set a firm deadline for a compromise by the end of February 2026.
The crypto sector was juggling to see clear state rules. Under U.S. President Donald Trump’s pro-crypto leadership, the crypto sector is finally getting regulatory clarity in forms of major bills, such as the GENIUS Act and the CLARITY Act.
However, it is important to make this bill perfect without any loopholes, which can cost the crypto sector later. As Coinbase’s CEO, Brian Armstrong stated earlier, “We appreciate all the hard work by members of the Senate to reach a bi-partisan outcome, but this version would be materially worse than the current status quo. We’d rather have no bill than a bad bill. Hopefully we can all get to a better draft.”
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