Stablecoin rules in the United States remain stalled after a second White House-brokered meeting between crypto firms and banks failed to produce a deal, leaving both sides waiting for clear legislation even as they signal that momentum is building.
According to Cointelegraph, the latest session at the White House brought together representatives from the digital asset industry and major banking lobbies to discuss how stablecoin provisions should be handled in a broader crypto market structure bill. Participants described the talks as productive, but said key disagreements over yield payments to stablecoin holders remain unresolved.
Crypto advocates argue that the United States needs a comprehensive framework to define how market regulators oversee digital assets and stablecoins, and that there is rare bipartisan appetite in Congress to move such a bill. The House passed its own CLARITY Act in mid 2025, but efforts stalled in the Senate Banking Committee as lawmakers struggled to reconcile consumer protection concerns, banking system risks and innovation goals.
A major sticking point is how the law treats yield or interest paid on stablecoin holdings, especially when those products are offered on exchanges or non-bank platforms. Banking groups have pushed to prohibit all yield payments tied to stablecoins, warning that high advertised returns could pull deposits out of the traditional banking system and undermine funding for local lending.
The crypto industry counters that blanket bans on yield would make stablecoins less competitive globally and push activity offshore, without necessarily improving safety. Some industry participants have urged lawmakers to preserve existing restrictions in the GENIUS Act, which bans stablecoin issuers from paying yield directly, while allowing more flexibility for third-party products that meet disclosure and risk management standards.
After the latest meeting, Ripple legal chief Stuart Alderoty said there was still clear bipartisan momentum behind “sensible” crypto market structure legislation and warned that Congress should act while the window is open. Dan Spuller of the Blockchain Association described the session as a smaller, more focused discussion where “stablecoin rewards were front and center” but noted that banks arrived with broad prohibitive principles rather than negotiating directly from the current bill text.
Major banking trade groups, including the American Bankers Association, the Bank Policy Institute and the Independent Community Bankers of America, said in a joint statement that ongoing discussions are needed and that any framework must embrace innovation without putting deposits at risk or undermining safety and soundness. Industry voices like BitGo CEO Mike Belshe have urged both sides to stop re-litigating past battles over the GENIUS Act and to keep the yield debate from derailing broader market structure rules.
For now, the lack of a deal means that stablecoin issuers, exchanges, banks and investors continue to operate in a patchwork environment where regulatory expectations differ sharply across jurisdictions. How Washington ultimately balances demand for stable, programmable money with concerns about bank disintermediation will shape not only the future of U.S. dollar stablecoins, but also the competitiveness of the U.S. in the global digital asset market.
