White House to host second stablecoin meeting with banks and crypto groups tomorrow

The White House is scheduled to host a second meeting on Tuesday afternoon to facilitate an agreement between banks and cryptocurrency firms regarding stablecoin yields. This issue is a major sticking point preventing progress on the CLARITY Act and has increased tensions between the two sectors. A previous meeting concluded without consensus on whether digital asset companies should be allowed to offer interest on stablecoins, as banks fear such yield-bearing products could cause significant deposit outflows from traditional finance. The upcoming session, involving senior staff and trade groups, will focus on practical details for a potential compromise to resolve the conflict between banks' concerns over deposit volatility and crypto firms' desire to offer interest-bearing stablecoins. Both sides are under pressure to present a compromise proposal by late February, which could significantly influence pending crypto legislation and future market regulations. Crypto firms have reportedly introduced new proposals, including giving community banks a larger role in the stablecoin market through reserve custody and joint issuance ventures.

(Source：Crypto Briefing)