Stablecoin Legislation Faces Key Test in White House Crypto Talks

The White House plans to meet with crypto and banking leaders next week and the goal is simple. Officials want to resolve growing disagreements around stablecoins. Since these disputes have slowed progress on key stablecoin legislation.

According to reports, the meeting will take place on February 2, 2026. Senior government officials will sit down with executives from crypto firms and major U.S. banks. They hope to find common ground.

Stablecoin Rewards Spark Conflict

At the center of the debate are stablecoin rewards. Many stablecoin issuers offer interest or yield to users. They earn this income by investing reserves in assets like U.S. Treasury bills.

Banks strongly oppose this model. They believe stablecoin rewards directly compete with traditional bank deposits. As a result, banks fear customers will move their money out of savings accounts.

Because of this disagreement, lawmakers have struggled to move forward with the CLARITY Act. The bill aims to create clear rules for stablecoins and crypto markets. However, ongoing tension has kept the legislation stuck.

Banks Warn of Deposit Losses

U.S. banks currently hold around $18 trillion in deposits. Therefore, they see stablecoins as a serious threat to their business model. Moreover, Standard Chartered recently warned that stablecoins could absorb up to $500 billion in deposits by 2028. If that happens, banks say their ability to lend money could suffer.

For this reason, banks want strict limits on how stablecoin issuers operate. They argue that only licensed banks should offer interest-bearing products.

Crypto Industry Pushes Back

Meanwhile, crypto companies see the issue differently. They argue that stablecoins backed by safe reserves deserve fair treatment. Crypto leaders also say that rewards encourage adoption and improve efficiency. In addition, they believe clear rules would help the U.S. stay competitive with other global markets.

Because of this, many in the crypto industry welcome the White House meeting. They view it as a chance to break the deadlock.

Optimism Builds Ahead of Talks

After news of the stablecoin legislation meeting broke, reactions spread quickly on social media. Many users expressed optimism about progress on regulation.

Some believe the talks could unlock stalled legislation. Others hope the meeting will bring balance between innovation and financial stability. While the outcome is still uncertain, the meeting signals a shift. The White House is now actively engaging both sides.