Today, the second Crypto powow at the White House took place, bringing together teams representing the digital asset sector and the establishment banking industry.
The goal is to garner reconciliation between the two groups who remain in disagreement over several issues, perhaps most importantly, the question of stablecoin yield – something old banks really fear. The CLARITY Act, the market infrastructure legislation, hangs in the balance.
Ji Hun Kim, CEO of the Crypto Council for Innovation, shared the following statement on the meeting:
“The important work continues. Thank you to the White House and Patrick Witt for convening and leading today’s constructive discussion on the treatment of stablecoin rewards within market structure legislation. CCI also appreciates the banking industry for their continued engagement. CCI looks forward to continuing to work with our members and industry peers to address the critical remaining issues, helping advance market structure, and supporting U.S. leadership in digital assets.”
Crypto reporter Eleanor Terrett shared a summary of the meeting on X. She said it was a “smaller, more productive meeting” than the previous gathering. The top item on her list was a prohibition on stablecoin yield as banks claim this will undermine lending to “Main Street.” Meanwhile, nothing could be further from the truth.
🚨NEW: Details from the White House stablecoin yield meeting, per banking and crypto sources in the room:
People on both sides called the meeting ‘productive,’ but, again, no compromise was reached by the end of the meeting. However, deal specifics were discussed in more detail… pic.twitter.com/w5nPlG1DLi
— Eleanor Terrett (@EleanorTerrett) February 11, 2026
Ripple Chief Legal Officer Stuart Alderoty said an agreement may be on the way:
“Productive session at the White House today – compromise is in the air. Clear, bipartisan momentum remains behind sensible crypto market structure legislation. We should move now – while the window is still open – and deliver a real win for consumers and America.”
Coinbase Chief Legal Officer Paul Grewal added that:
“Crypto showed up ready to work, and we all made progress. There’s still more work to do for sure, and we hope everybody will stay at the table to do what’s right.”
Blockchain Association CEO Summer Mersinger described the meeting as driving meaningful momentum as the different sides “remain constructively engaged on resolving outstanding issues.”
So is it a policy trap?
Banks remain recalcitrant on the issue of stablecoin yield. But do they not realize that digital asset innovators can easily find a workaround that gets them to about the same place? The future is digital and near-real-time, driven by technology. Wouldn’t it be better if the rules facilitated competition between the two sides, with banks offering similar services rather than the legislative foot-dragging they are pursuing now?
As for the elected officials, they should focus on what is best for consumers. That should make things simple.
The administration hopes to wrap things up by the end of February.
