White House Calls Emergency Talks Big Banks and Crypto Giants Clash Over Stablecoin Interest Rules

White House Convenes Banks and Crypto Leaders for High-Stakes Talks on Stablecoin Rules

Senior officials at the White House are set to host a second high-level meeting on Tuesday, February 10, bringing together major U.S. banks and leading cryptocurrency industry representatives to discuss the future of stablecoin regulation. The talks are widely seen as a renewed attempt to break a political and regulatory deadlock that has slowed progress on federal crypto legislation, including the proposed Clarity Act.

The meeting, confirmed through information shared by the official X account of Coin Bureau and subsequently reviewed by the hokanews editorial team, follows an earlier round of discussions that failed to produce consensus. At the center of the debate is a contentious question: whether crypto firms should be allowed to offer interest-bearing stablecoins.

Source:Xpost

A Second Attempt at Compromise

According to sources familiar with the agenda, U.S. officials hope this second meeting will succeed where the first fell short. Representatives from some of the largest American banks, including Bank of America, JPMorgan Chase, and Wells Fargo, have been invited to sit alongside leaders and trade groups from the crypto sector.

On the digital asset side, participants are expected to include representatives linked to companies such as Coinbase, Ripple, and Circle, all of which have a direct stake in how stablecoins are ultimately regulated in the United States.

The White House has not publicly released a detailed agenda, but officials have indicated that the focus will be on finding common ground between traditional financial institutions and crypto firms, particularly around consumer protection, financial stability, and competitive fairness.

Why Stablecoins Are at the Center

Stablecoins, digital tokens typically pegged to the U.S. dollar, have become a core part of the crypto ecosystem. They are widely used for trading, payments, and decentralized finance applications, offering the speed of blockchain transactions with price stability tied to fiat currency.

However, their growing role has raised concerns among regulators and banks. Traditional lenders argue that allowing crypto firms to offer interest on stablecoins could blur the line between banking and non-bank financial services, potentially undermining existing regulatory frameworks.

Crypto companies counter that interest-bearing stablecoins are a natural evolution of financial innovation and that clear rules would enhance transparency rather than increase risk.

“This debate is really about who gets to offer dollar-like products and under what rules,” said a former U.S. financial regulator. “That’s why it’s so sensitive.”

Big Banks vs Crypto Firms

Large banks have long expressed concerns that crypto firms may gain an unfair advantage if they can offer yield on stablecoins without being subject to the same capital, liquidity, and compliance requirements as federally regulated banks.

From the banking industry’s perspective, any entity offering interest on dollar-backed instruments should face bank-level oversight. Without it, they argue, risks could migrate outside the regulated system.

Crypto firms, meanwhile, say innovation should not be stifled by forcing digital asset companies into frameworks designed for 20th-century banking. They argue that blockchain-based transparency, real-time auditing, and on-chain reserves can provide protections that differ from, but are not necessarily weaker than, traditional rules.

The Clarity Act at Stake

The broader goal of the meeting is to help advance the Clarity Act, a piece of proposed legislation aimed at defining regulatory responsibilities for digital assets in the United States. The bill seeks to clarify which agencies oversee various crypto products and to provide legal certainty for companies operating in the space.

Progress on the Clarity Act has stalled in part because of disagreements over stablecoins. Lawmakers from both parties have signaled that without consensus between banks and the crypto industry, moving forward could be politically difficult.

White House officials are said to view this week’s meeting as a chance to unlock that stalemate.

“If there is movement here, it could accelerate the entire legislative process,” said a policy analyst tracking the talks.

A Broader Policy Context

The renewed push comes as other jurisdictions move ahead with clearer crypto frameworks. The European Union has already implemented comprehensive digital asset rules, while countries in Asia and the Middle East continue to compete for crypto innovation.

For the United States, industry leaders warn that prolonged uncertainty risks pushing innovation offshore.

At the same time, regulators remain wary of repeating past mistakes seen in the rapid growth and collapse of poorly regulated crypto projects. Stablecoins, because of their close link to the dollar, are viewed as particularly important to get right.

Market and Industry Reaction

Financial markets have so far reacted cautiously to news of the meeting. While crypto prices showed little immediate movement, analysts say the talks could have long-term implications for the structure of the U.S. digital asset market.

“If banks and crypto firms find a middle ground, it would be a major confidence boost,” said a digital assets strategist at a U.S. investment firm. “Clear rules are ultimately good for everyone.”

The crypto industry, in particular, has emphasized that even restrictive rules would be preferable to continued uncertainty.

Media Confirmation and Reporting

The upcoming meeting was initially highlighted by Coin Bureau on X and later cited by hokanews as part of its coverage of regulatory developments. As with many sensitive policy discussions, official statements have been limited, and much of the information has emerged through informed sources rather than formal announcements.

Neither the White House nor participating companies have publicly commented in detail ahead of the talks.

What to Watch Next

Observers will be closely watching for any signals of compromise, especially on the issue of interest-bearing stablecoins. Possible outcomes include caps on yields, stricter reserve requirements, or hybrid models that involve partnerships between banks and crypto firms.

Any agreement, even a partial one, could pave the way for renewed momentum on the Clarity Act and reshape the regulatory outlook for stablecoins in the U.S.

Failure, however, could prolong uncertainty and deepen divisions between traditional finance and the crypto sector.

Conclusion

Tuesday’s meeting at the White House represents a critical moment for the future of stablecoin regulation in the United States. By bringing major banks and crypto leaders to the same table, officials are signaling the urgency of resolving long-standing disagreements that have slowed policy progress.

Confirmed through information shared by Coin Bureau and cited by hokanews, the talks underscore how central stablecoins have become to the broader financial system. Whether compromise is reached or not, the outcome is likely to influence U.S. crypto policy for years to come.

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Writer @Ethan
Ethan Collins is a passionate crypto journalist and blockchain enthusiast, always on the hunt for the latest trends shaking up the digital finance world. With a knack for turning complex blockchain developments into engaging, easy-to-understand stories, he keeps readers ahead of the curve in the fast-paced crypto universe. Whether it’s Bitcoin, Ethereum, or emerging altcoins, Ethan dives deep into the markets to uncover insights, rumors, and opportunities that matter to crypto fans everywhere.

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