The White House to focus on stablecoin yields: Is the era of compliant "high yields" coming to an end?

Major banks such as Bank of America, JPMorgan Chase, and Wells Fargo have been invited to participate in the White House crypto meeting scheduled for next week. This will be the first time that representatives from the banking industry have taken part in such high-level policy discussions, with the core issue directly addressing the most sensitive topic in the current crypto market—stablecoin yields. The meeting is closely related to the ongoing “Cryptocurrency Market Structure Act,” and the Executive Director of the White House Cryptocurrency Committee has urged all parties to reach a consensus by the end of this month.

Meeting Background

Next week, the White House will hold a new round of cryptocurrency discussions focusing on stablecoin yields. Unlike previous meetings, this session will include senior policy officials from multiple banks for the first time. The meeting remains at the staff level, and corporate CEOs will not be invited, but major banks such as Bank of America, JPMorgan Chase, and Wells Fargo have confirmed receipt of invitations.

This second round of series meetings comes at a critical time for US crypto regulation. The meeting is directly related to the ongoing “Cryptocurrency Market Structure Act,” and Patrick Witte, Executive Director of the White House Cryptocurrency Committee, has urged all parties to reach a consensus by the end of this month.

Regulatory Status

The U.S. Senate recently released an updated draft of the Digital Asset Market Structure Act, clearly defining the boundaries for stablecoin reward mechanisms. According to the latest text, digital asset service providers are prohibited from paying any form of interest or passive income to users who only hold payment-type stablecoins. This adjustment stems from a compromise proposed by Democratic Senator Angela Olsbrough, who advocates allowing platforms to provide incentives for specific operational behaviors but not equate stablecoin balances themselves with bank deposit tools.

Meanwhile, under the “GENIUS Act,” stablecoin issuers are prohibited from directly paying interest, but banking industry groups believe this does not fully close the loophole for third-party platforms to offer similar interest-like returns.

Core Disputes

Banks are concerned that if crypto companies can offer high yields to stablecoin holders, it could lead to a significant outflow of deposits from traditional banks. Such deposit fluctuations would directly impact banks, especially community banks’ lending capacity.

In a joint letter organized by the American Bankers Association, banking groups warned: “If billions of dollars shift away from community bank loans, small businesses, farmers, students, and homebuyers in our towns will suffer.” The crypto industry counters that this is an attempt by banks to use regulation as a pretext to stifle innovation and maintain regulatory barriers. Crypto companies argue that the banks’ proposals will weaken market competition and hinder innovation.

Position Battles

U.S. Treasury Secretary Scott Bessent stated at a recent congressional hearing, “I have always been an advocate for these small banks; deposit fluctuations are highly undesirable.” He pledged to continue efforts to ensure that stablecoin yield payments do not cause deposit volatility. This statement seems to acknowledge some of the concerns raised by banks.

Senior crypto industry figures and President Trump’s advisory team have held talks on multiple potential compromise solutions this Monday. The meeting was hosted by Patrick Witte, Executive Director of the President’s Digital Asset Advisory Committee, and included senior representatives from both the crypto sector and traditional banking.

Market Impact

The stablecoin market is undergoing a structural shift from static payment tools to financial products focused on yield generation and asset management. By the end of 2025, the yield-bearing stablecoin market size has exceeded $20 billion, with the total stablecoin supply growing over 50% year-over-year.

Some experts predict that by 2026, the stablecoin market could more than double, reaching a circulation of $1 trillion. Over 20% of active stablecoins will offer embedded yields or programmable features. This trend has already influenced the market behavior of major cryptocurrencies like Bitcoin and Ethereum. According to Gate data, as of February 9, 2026, Bitcoin’s price is $70,460.8, with a market cap of $1.41 trillion, accounting for 56.14% of the entire crypto market. Ethereum’s price is $2,077.52, with a market cap of $252.82 billion, representing 10.04%. The sensitivity of these core assets to macro policy and regulatory changes is increasing.

Legislative Progress

Senate Banking Committee Chair Tim Scott stated that even without a full bipartisan agreement, he might push for the crypto market structure legislation to move into the markup stage as soon as possible. In addition to the stablecoin provisions, the new draft incorporates bipartisan proposals championed by Cynthia Lummis and Ron Widen, clarifying that software developers and infrastructure providers will not be considered financial intermediaries solely for writing or maintaining code.

Regarding the legislative timeline, the Treasury Department is required to complete the implementation details of the “GENIUS Act” by July 18 of this year. Treasury Secretary Bessent said, “I don’t see any obstacles at the moment. If we encounter any, we will inform you and the committee.”

Changes in regulatory policy directly impact the pricing logic of stablecoins and the entire crypto market. When regulation becomes stricter, markets typically experience short-term volatility before gradually adapting to the new compliance framework. Currently, the top two assets by market cap, Bitcoin and Ethereum, have shown increased sensitivity to macro factors.

Global Perspective

The EU’s Markets in Crypto-Assets Regulation, Singapore’s Payment Services Act, and the Financial Action Task Force’s cross-border guidance all provide different examples of stablecoin regulation. If the US fails to develop a coherent stablecoin yield policy, innovation and capital may shift to jurisdictions with more favorable regulation. This could weaken the US’s competitiveness in digital finance and reduce its influence on global regulatory standards.

Worldwide, over 80% of banks have already developed digital asset strategies. More countries are adopting frameworks and regulations to enable innovation. As global regulation clarifies, non-dollar stablecoins are expected to grow by 2026.

Industry organizations such as the Bank Policy Research Institute and the American Bankers Association have explicitly expressed concerns that high-yield stablecoin accounts could trigger deposit outflows. With Treasury Secretary Bessent’s commitment to complete the “GENIUS Act” implementation details by July 18, the discussion around financial innovation and stability boundaries is entering its final countdown. As the US Treasury opens and closes its doors for crypto policy, the global financial system is witnessing a fundamental transformation. The process of stablecoins evolving from fringe experiments into trillion-dollar financial infrastructure is being written into the agenda of next week’s White House meeting.