Emre Yumlu 
Efforts to establish a comprehensive regulatory framework for the US crypto market are continuing, as policymakers attempt to define how digital assets should be supervised. In this context, the White House hosted a second round of discussions between crypto industry representatives and banking lobby groups. While participants described the meeting as constructive, it ended without a formal agreement—particularly on stablecoin-related provisions.
Ripple’s Chief Legal Officer Stuart Alderoty, who attended the session, emphasized that bipartisan backing for sensible crypto market structure legislation remains intact. However, the debate over whether stablecoin holders should be allowed to earn yield has emerged as the central sticking point in negotiations.
Stablecoin Yield at the Center of Disagreement
The House of Representatives previously approved a similar market structure proposal, the CLARITY Act, in July. Yet the legislative process stalled in the Senate Banking Committee due to insufficient bipartisan support. Momentum weakened further after Coinbase withdrew its backing for the bill, citing provisions that would prohibit yield payments tied to stablecoins.
Banking groups argue that allowing stablecoin holders to receive yield—especially through third-party platforms such as crypto exchanges—could draw funds away from traditional bank deposits. In their view, such mechanisms may erode deposit bases and pose risks to financial system stability. Reports indicate that documents circulated by banking representatives during the meeting outlined principles supporting a broad prohibition on stablecoin interest or yield structures.
Discussions Ongoing, No Final Deal
The latest White House session was reportedly more focused and technical compared to the earlier meeting held in recent weeks. Participants from the crypto sector described the exchange as serious and solution-oriented, though fundamental differences remain unresolved.
Major banking organizations—including the American Bankers Association, the Bank Policy Institute, and the Independent Community Bankers of America—issued a joint statement stressing that continued dialogue is necessary to move the legislation forward. They highlighted the importance of fostering financial innovation without compromising the safety and soundness of the banking system or jeopardizing deposits that support local lending and economic activity.
Meanwhile, some crypto industry voices argue that reopening debates over stablecoin yield—already addressed in the GENIUS Act, which bars issuers from directly paying interest—risks delaying broader market structure reforms. According to this view, the overarching regulatory framework should advance independently of the yield dispute.
For now, negotiations remain active but inconclusive, with the fate of the proposed legislation hinging on whether common ground can be found in the coming weeks.
In the comment section, you can freely share your comments about the topic. Additionally, don’t forget to follow us on Telegram, YouTube, and Twitter for the latest news and updates.