White House sets February deadline to settle $6.6 trillion fight between Coinbase and banks
The White House mandated banks and crypto firms resolve the stablecoin yield debate by late February or risk stalling broader digital asset legislation.Summary
The White House has set a late February deadline for banks and crypto firms, including Coinbase, to reach an agreement regarding whether platforms can offer rewards on stablecoin holdings, which banks argue circumvents rules intended to distinguish payment stablecoins from deposit accounts. The dispute centers on passing Treasury yields to users, a conflict that has escalated as stablecoin market capitalization approaches $305 billion, posing a quantifiable risk of deposit flight (potentially up to $6.6 trillion under stress scenarios, according to the Bank Policy Institute). If consensus is reached, the CLARITY Act advances, likely incorporating a Senate Banking overlay that might establish an "activity-based rewards" safe harbor, allowing rewards tied to transactions rather than mere holding. If no deal is struck, the comprehensive digital asset market structure package stalls for 2026, leading instead to fragmented, agency-by-agency enforcement, which creates regulatory uncertainty and path dependence for the industry.
(Source：CryptoSlate)