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White House Hosts Third Closed-Door Stablecoin Yield Meeting – “More to Come,” Leaders Say

Front view of the White House with a colorful sunset sky in the background, emphasizing its iconic architecture

On February 19, 2026, the White House convened its third closed-door session between crypto advocates and major banking trade groups to negotiate the treatment of rewards and yield on stablecoin holdings — one of the last major sticking points blocking comprehensive U.S. crypto market-structure legislation.

Key Takeaways from Thursday’s Session

  • Duration & tone: The meeting lasted several hours (starting 9:00 a.m. ET) and was described as “constructive” and “cooperative” by multiple participants.
  • Crypto Council for Innovation Managing Director Ji Hun Kim: “The conversation built upon previous meetings to establish a framework that serves American consumers while reinforcing U.S. competitiveness. More to come to build upon today’s progress.”
  • Coinbase Chief Legal Officer Paul Grewal (via X): “The dialogue was constructive and the tone cooperative. More to come.”
  • No final compromise was reached, according to two sources familiar with the discussions.

White House Proposal & Competing Principles

  • The White House reportedly presented a set of principles allowing companies (including exchanges like Coinbase) to offer or pay rewards tied to certain activities or balances.
  • Banks countered with a broad “prohibition principles” framework demanding a near-total ban on any financial or non-financial benefit linked to holding, owning, or using payment stablecoins — including strict enforcement, anti-evasion measures, and tight marketing restrictions.
  • Crypto stakeholders strongly rejected the banking position. The Digital Chamber later published its own framework that aligns more closely with the current Senate Banking Committee draft, which permits yield if the customer takes specific actions (e.g., selling stablecoins) but prohibits passive yield simply for holding balances.

Why Stablecoin Yield Remains the Final Roadblock

  • Banks argue that allowing yield on stablecoins would drain deposits from traditional institutions, harming community banks.
  • Crypto firms counter that banning yield would stifle innovation and push activity offshore.
  • The GENIUS Act (passed summer 2025) already prohibits stablecoin issuers from paying direct interest to holders, but it does not prevent third-party platforms (e.g., Coinbase) from offering rewards

Legislative Status & Timing

  • Senate Banking Committee draft allows limited yield tied to customer actions (amendment added recently).
  • Senate Agriculture Committee passed its own version without Democratic support, partly due to concerns over President Trump’s crypto conflicts of interest.
  • Ripple CEO Brad Garlinghouse (Fox Business, Feb 19): gave a 90% chance of a bill passing by end of April, citing strong White House pressure.
  • Polymarket odds of a crypto market-structure bill passing in 2026 fluctuated between 54%–85% recently and sat at 72% Thursday morning.

Bottom Line

The White House appears determined to keep the parties at the table “until a deal is made.” No date has been set for the next meeting, but sources indicate the ball is now in the banks’ court.

Until a compromise is reached on yield, passage of broader legislation that divides jurisdiction between the CFTC and SEC and sets new regulatory standards remains stalled.

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