White House Considers New Talks With Crypto And Banks On Stablecoin Yield

TLDR

Table of Contents

White House is considering talks with crypto firms and banks on stablecoin yield regulations.
Stablecoin yield talks aim to resolve the ongoing deadlock in crypto market structure discussions.
The debate centers around whether crypto platforms should offer interest on stablecoin holdings.
Talks between crypto firms and banks failed to reach a resolution earlier this month.

The White House is contemplating a fresh round of talks with crypto firms and banks to address the contentious issue of stablecoin yield regulations. The discussions could take place as soon as Thursday, with the aim of breaking the ongoing impasse on the topic, which has delayed legislative progress on the crypto market structure bill known as the CLARITY Act.

WHITE HOUSE REPORTEDLY EYEING FEB. 19 TALKS BETWEEN CRYPTO AND BANK REPS TO DISCUSS STABLECOIN YIELD
— The Wolf Of All Streets (@scottmelker) February 17, 2026

This potential meeting comes after two previous attempts to bridge differences between the crypto and banking sectors earlier this month. However, those talks ended without an agreement, leaving key issues unresolved. The administration has set a late-February deadline to find a resolution before the legislative calendar becomes more complicated due to upcoming midterm elections.

🚨NEW: Two sources familiar with the matter tell me the White House is considering another stablecoin yield meeting between banks and crypto representatives Thursday, though no plans have been finalized. https://t.co/Og3OooHaQr
— Eleanor Terrett (@EleanorTerrett) February 17, 2026

Stablecoin Yield Regulations at the Core of Debate

One of the primary issues driving the discussions is whether crypto platforms should be allowed to offer interest on stablecoin holdings. Banks have voiced concerns that such a move could lead to deposit shifts away from traditional banking systems, creating an uneven playing field between the two industries.

Crypto platforms have long advocated for the ability to offer yield on stablecoin holdings, arguing that it could attract more investors and provide greater flexibility in the market. Stablecoins are digital currencies pegged to traditional assets like the U.S. dollar, and they have become a key element in the crypto ecosystem.

These platforms claim that offering interest on stablecoins could make them more competitive with traditional financial products, such as savings accounts.

However, banks have warned that allowing this could undermine their ability to compete, particularly in a time when stablecoins are growing in popularity. They argue that the ability to offer interest on stablecoins might siphon off funds from traditional deposit accounts, undermining the stability of the banking system.

Previous Efforts to Reach a Compromise

Earlier this month, the White House facilitated two rounds of talks between banking and crypto sector representatives. Despite both parties agreeing on certain principles, they were unable to find common ground on the issue of stablecoin yield.

At the heart of these discussions is how to regulate crypto firms offering yield on stablecoins while ensuring that traditional banks are not placed at a competitive disadvantage. The differing views on how to structure such regulations have made it difficult to reach a compromise. The latest round of talks, which could happen later this week, aims to tackle these issues head-on and find a middle ground.

Urgency Due to Legislative Calendar

The White House’s decision to revisit the issue comes as the legislative calendar begins to narrow with the approach of the midterm elections. Lawmakers are keen to move forward on the CLARITY Act, a bill that seeks to establish clear regulations around digital assets, including stablecoins. However, the unresolved debate over stablecoin yield has created a bottleneck in the legislative process.

The administration has set a deadline of late February to finalize discussions, but with the upcoming elections, the window to pass any related legislation is shrinking. The White House is now working against the clock to broker a resolution that satisfies both the crypto industry and traditional financial institutions.