U.S. Stablecoin Regulation Talks Hit Roadblock Over Yields

During a February 2, 2026, meeting at the White House, bank representatives reportedly refused to compromise on stablecoin yields. The crypto advocates attending the meeting left feeling frustrated. This deadlock has stalled progress on a broader U.S. crypto market-structure bill.

Bank lobbyists argued that rules must “support local lending and protect the safety and soundness of the financial system.” They saw yield-bearing stablecoins as potential competitors to deposits, which could reduce lending by an estimated $100 billion annually.

Crypto Advocates Push for Change

Crypto representatives pushed for legislation that would allow interest payments on stablecoins. They argued this could help adoption and bring clarity to the market. However, with banks standing firm, advocates left the meeting feeling that negotiations are stalling.

The White House has now asked both sides to return prepared to agree on proper changes. Until these talks resume productively, the crypto bill is unlikely to move forward.

Banks vs. Crypto: The Yield Debate

This standoff highlights a key friction point in U.S. crypto policy. Moreover, banks are being careful about allowing yield-bearing stablecoins, which they see as a threat to conventional deposits and lending. Meanwhile, the crypto industry seeks clear rules and opportunities for growth.

The disagreement shows the challenge of balancing financial innovation with stability. Lawmakers face pressure to protect consumers while also supporting a rapidly evolving crypto market.

Implications for the Stablecoin Market

If the deadlock continues, legislative clarity for stablecoins could be delayed. This uncertainty affects not only stablecoin issuers but also broader crypto markets. Investors and companies are watching closely to see how negotiations unfold.

The meeting also shows the importance of compromise between regulators, banks and the crypto industry. Until an agreement is reached, market participants may have to wait for new guidance before expecting meaningful changes to the U.S. stablecoin framework.

Future of Stablecoin Market in the U.S.

Both sides are expected to return to negotiations in the coming weeks. The White House is urging participants to come with realistic proposals. How the U.S. stablecoin regulation talks conclude will likely shape the future of stablecoin regulation in the U.S. and impact both banks and digital asset companies.