White House to Hold Third Stablecoin Yield Meeting on February 20

Highlights:

• White House to host third stablecoin yields meeting at 9 a.m. ET Friday.
• The main agenda will address tensions between banks and crypto firms over yield-bearing stablecoins.

• These talks directly affect the stalled bipartisan CLARITY Act, which aims to define crypto oversight roles.

The fight over crypto rules in the United States is heating up. Lawmakers are preparing for another round of talks on the market structure bill, and stablecoin yield remains the key issue. On February 20, at 3:00 PM ET, the White House will host members of Congress for a third meeting. The timing shows how urgent the situation has become after months of stalled progress. 

Stablecoin Yield Debate Blocks CLARITY Act Progress

The CLARITY Act first passed the U.S. House of Representatives on July 17, with a 294 to 134 vote. Yet the bill has stalled in the Senate. Ongoing friction between traditional banks and crypto firms over yield and rewards for stablecoin holders remains unresolved and continues to delay final approval.

Banks warn that allowing interest on stablecoins could pull funds away from bank deposits, reduce lending capacity, and create pressure on the financial system. Crypto firms see it differently. They argue that banning rewards would slow innovation and limit user choice. Ripple and other industry voices say the CLARITY Act is close to becoming law, but the exact timeline remains unclear.

Officials from agencies like the U.S. Department of the Treasury and the Federal Reserve are closely involved in these talks. Both have earlier stressed the need to control risks linked to digital assets, especially large dollar-based tokens used at scale.

The first two meetings failed to produce an agreement on stablecoin yield. In the first session, lawmakers debated whether stablecoins should offer rewards. Banks warned that yield could pull money from deposits and weaken financial stability. Crypto firms defended yield and called it necessary for innovation. In the second meeting, banks presented a formal proposal to ban rewards on payment stablecoins. Crypto representatives rejected the plan. Despite describing the talks as constructive, both sides left without a compromise.

March 1 Deadline Puts Pressure on Stablecoin Talks

The deadline for reaching an agreement by March 1 was set by the White House. This deadline means that there is now significant pressure on both banks and crypto companies to close the gap. The meeting scheduled for February 20 now appears to be quite significant. This meeting could determine whether the overall market structure bill accelerates in the Senate or if there continues to be uncertainty in the US crypto space for much of 2026.

Broader Impact on the Crypto Industry

Senator Cynthia Lummis, a strong supporter of stablecoins, has called on U.S. banks to welcome the growing role of digital dollars. She says stablecoins are not just another crypto product, but a new type of financial tool that could serve both banks and their customers.  As chair of the Subcommittee on Digital Assets, Lummis has stressed that stablecoins should not be viewed as a danger to banks. Instead, she describes them as a digital extension of the U.S. dollar. Speaking recently with Fox Business, she explained that banks could generate new revenue through custody and related digital asset services.

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