- Crypto firms and banks met at the White House, but failed to agree on whether stablecoins should offer yields or rewards.
- The White House pushed both sides to find compromise language this month as Senate momentum on crypto bills stalls.
- Stablecoin yield disputes remain the main barrier to a Senate vote despite House passage and committee progress.
Crypto firms and major banking groups met Monday at the White House to break a deadlock over crypto market structure legislation. President Donald Trump’s crypto adviser, Patrick Witt, led the talks in Washington, D.C. The meeting aimed to resolve disputes over stablecoin rewards, as lawmakers push stalled legislation through Congress.
Stablecoin Yields Main Topic
The closed-door session lasted more than two hours in the Diplomatic Reception Room. According to people familiar with the talks, crypto representatives outnumbered bankers by a wide margin. However, participants left without an agreement on stablecoin yield language.
Notably, the White House instructed both sides to reach a compromise before the month ends. The focus remains whether stablecoins should offer yields or rewards. Banking groups argue yields threaten core deposit businesses and local lending.
Crypto advocates counter that third-party rewards already exist under current law. The debate has become one of the main obstacles blocking Senate progress. Without movement, a floor vote this year appears less likely.
Negotiations Narrow as Senate Clock Ticks
Following the meeting, the White House asked a smaller group to continue negotiations. Participants were told to return with specific language changes. Banking representatives may need approval from member institutions before agreeing to revisions.
Legislation governing U.S. crypto markets passed the House last year. It also cleared one Senate committee recently. However, it still faces hurdles in the Senate Banking Committee.
Last month, a planned hearing was canceled after Coinbase withdrew support. The company cited unresolved stablecoin yield concerns. The Senate Agriculture Committee advanced a separate bill focused on the Commodity Futures Trading Commission, without Democratic backing.
Industry Reactions and Political Crosscurrents
Cody Carbone, CEO of the Digital Chamber, described the meeting as necessary progress. He said inaction was not an option for innovators or consumers. Blockchain Association CEO Summer Mersinger also called the talks an important step.
Banking groups, including the American Bankers Association and Financial Services Forum, issued a joint statement. They emphasized protecting financial stability and local lending.
The meeting occurred during a partial federal government shutdown. That situation may limit staff capacity to advance negotiations. Meanwhile, Democrats continue pressing for ethics provisions tied to Trump-related crypto businesses.
