Banks and crypto firms have made incremental progress in Washington, though disagreement over stablecoin yields remains a key obstacle to broader legislation. The White House hosted a third closed-door meeting on Thursday, bringing together industry groups, major bank trade associations, and policy officials in an effort to break the impasse holding up broader crypto legislation. The session was described as constructive, building on prior talks and aiming to create a framework that protects consumers while strengthening U.S. competitiveness.
Ji Kim, CEO of the Crypto Council for Innovation, described the gathering as constructive, noting that the discussions continued to refine possibilities for a yield framework. Coinbase chief legal officer Paul Grewal echoed that tone, calling the dialogue cooperative and noting that more progress was made.
At issue is whether platforms can offer yield on stablecoins. Banks argue rewards threaten traditional deposits, while crypto firms say banning them would curb innovation. The GENIUS Act already bars issuers from paying direct interest, but third-party rewards remain contested. Until this question is settled, advancement of the broader market-structure bill remains uncertain, with Senate action still pending.
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