The debate over crypto regulation in the United States has moved out of policy papers and into real financial decisions. At its core, the disagreement is about where money is held, who is allowed to manage it, and who benefits when it earns a return.
Those questions sit behind some of the most sensitive parts of the financial system, from stablecoin yields to access to banking services, and they are now shaping one of the most difficult policy battles in Washington.
Senior officials are preparing to meet with executives from both the banking sector and the crypto industry in an effort to break the stalemate around stalled digital asset legislation. The meeting, first reported by Reuters, is being organized by the White House’s crypto council and is focused on finding common ground after months of deadlock over how federal rules for crypto markets should be written.
A Bill Stuck Between Two Industries
At the center of the dispute is how stablecoins are treated under proposed legislation, particularly when it comes to interest and rewards paid on customer holdings. Crypto firms argue that offering yield on dollar-pegged tokens is essential to attracting users and competing fairly with traditional financial products. Banks see the same feature as an existential threat.
Executives from major trade groups on both sides are expected to attend the meeting. Summer Mersinger, chief executive of the Blockchain Association, which represents companies like Coinbase, Ripple, and Kraken, confirmed her group’s participation and framed the talks as a chance to finally move forward. “We look forward to continuing to work with policymakers across the aisle so Congress can advance lasting market structure legislation and ensure the United States remains the crypto capital of the world,” she said.
Cody Carbone, CEO of The Digital Chamber, echoed that sentiment, crediting the White House with bringing competing interests to the same table.
Jemi Motesho
Why Stablecoin Yield Became the Flashpoint
The bill at issue, often referred to as the Clarity Act, is the product of years of lobbying and negotiation. Its goal is to create a unified federal rulebook for digital assets, something crypto firms have long argued is necessary to operate with legal certainty in the United States. The House of Representatives passed its version of the bill last year, but progress in the Senate has been uneven.
A key stumbling block emerged around stablecoins. A law passed previously created a federal framework for stablecoin issuers and explicitly barred them from paying interest directly. Banks argue that the language left a loophole, allowing third parties like crypto exchanges to offer yield instead. From their perspective, that could encourage customers to move deposits out of insured banks and into crypto platforms, weakening a core pillar of the traditional financial system.
Crypto companies see it differently. They argue that banning rewards would make stablecoins less useful and less competitive, especially when compared to high-yield savings accounts, money market funds, and other financial products already available to consumers.
The Senate Banking Committee was expected to debate and vote on the bill earlier this month, but the session was postponed at the last minute. President Donald Trump’s administration has made clear that it wants progress. During the campaign, Trump actively courted crypto donors and positioned himself as supportive of digital asset adoption.
Whether the upcoming meeting leads to a breakthrough remains uncertain. The White House intervention does not guarantee agreement, but it does mark a shift. Crypto regulation is no longer something Congress can push down the road indefinitely. The question now is whether banks and crypto firms can accept a deal that leaves neither side fully satisfied, but finally gives the market the clarity it has been waiting for.
Jemi Motesho
