The White House convened discussions with crypto companies and banks regarding stablecoin yields, but legislative differences remain to be resolved.

The White House convened a closed-door meeting this Monday with representatives from the crypto industry and traditional banking to discuss stablecoin rewards, a core point of contention in crypto legislation. Participants included Coinbase, several crypto industry associations, and banking organizations. The meeting was chaired by Patrick Witt, a member of the President's Digital Asset Advisory Council. Crypto industry representatives generally spoke positively of the meeting. Summer Mersinger, CEO of the Blockchain Association, stated that the meeting was an important step in pushing bipartisan legislation on the structure of the digital asset market, with stablecoin rewards being one of the remaining key points of contention. Cody Carbone, CEO of the Chamber of Digital Commerce, also stated that the parties had identified key pain points and potential compromise directions, but a final solution had not yet been reached, with the goal of establishing a path by the end of February. The report points out that the stablecoin rewards issue mainly centers on whether to allow third-party platforms (such as Coinbase) to offer rewards to stablecoin holders. Banking organizations continue to oppose such practices, fearing they could divert bank deposits, impact community bank lending capacity, and criticizing the previously passed GENIUS stablecoin bill for regulatory loopholes on this issue. Sources familiar with the matter said the banks took a relatively hard line during the meeting, limiting the flexibility of the negotiations. The White House plans to narrow the scope of subsequent consultations, pushing all parties to make decisions on specific compromises in future meetings. (The Block)