White House Crypto Legislation Talks "Productive," Stablecoin Regulation Disagreements the Biggest Uncertainty

February 11 News: The White House led a new round of consultations with representatives from the cryptocurrency and banking industries regarding the stablecoin provisions in the Market Structure Bill. Participants generally described the meeting as “productive,” but no consensus was reached on the core disagreements.

Ripple Chief Legal Officer Stuart Alderoty posted on X that both sides are trying to find room for compromise, and both parties remain optimistic about legislation on crypto market structure. He emphasized that this is a critical window for advancing the implementation of the US crypto regulatory framework.

Congress aims to pass a bill that clearly defines the responsibilities and boundaries of US regulators over the digital asset market. The House previously passed the CLARITY Act, but progress stalled in the Senate Banking Committee due to lack of bipartisan support. Last month, major industry lobbyists and the largest US compliant CEX withdrew support over a clause in the bill that bans stablecoins from paying yields to holders, further pressuring the legislative process.

Banking groups believe that third-party platforms offering yields to stablecoin users could undermine bank deposits and pose risks to financial stability. Therefore, they advocate for including a comprehensive “prohibition on yields and interest” in the bill. The crypto industry, however, argues that such restrictions could stifle innovation and weaken the competitiveness of stablecoins in cross-border payments and fund management.

This is the second meeting between the two sides at the White House within two weeks. Dan Spuller from the Blockchain Association said the meeting was smaller and more focused, but the issue of stablecoin reward mechanisms remains the biggest point of disagreement. Meanwhile, three major industry organizations, including the American Bankers Association, issued a joint statement emphasizing the need for ongoing dialogue to balance innovation and security.

Mike Belshe, CEO of BitGo, called for an end to the old disputes surrounding the GENIUS Act and urged the swift progress of market structure legislation. He believes that the issue of stablecoin yields should no longer hinder the development of the entire crypto regulatory framework.

Industry experts generally agree that the direction of stablecoin regulation will profoundly impact the structure of the US crypto market, the pace of institutional participation, and the global digital asset regulatory landscape.