White House Convenes Banks and Crypto Leaders in Push to Break Stablecoin Deadlock

The White House is set to host senior executives from the banking and cryptocurrency industries this week in an effort to revive landmark digital-asset legislation that has stalled amid sharp disagreements between the two sectors, according to people familiar with the matter.

The meeting, convened by the White House’s crypto council, will bring together representatives from major trade groups to discuss unresolved provisions in the proposed legislation—particularly how crypto firms can offer interest or rewards on customer holdings of dollar-pegged tokens known as stablecoins.

The talks mark the most direct attempt yet by the administration of Donald Trump to broker a compromise between banks and crypto companies, whose competing interests have slowed progress on a bill seen as pivotal to the future regulation of digital assets in the United States.

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A Stalled Bill with High Stakes

The legislation at the centre of the discussions, widely referred to as the Clarity Act, aims to establish a comprehensive federal framework for regulating cryptocurrencies and related financial products. It represents the culmination of years of lobbying by the crypto industry, which has long argued that existing securities and commodities laws are ill-suited to digital assets.

While the U.S. House of Representatives passed its version of the bill in July with notable bipartisan support, progress in the U.S. Senate has been slower. The main sticking point has been the treatment of stablecoins—digital tokens typically backed by reserves of cash or cash-equivalent assets and designed to maintain a one-to-one value with the U.S. dollar.

Crypto firms want the flexibility to pay yields or rewards on stablecoin balances, arguing that such features mirror traditional financial products and are essential for innovation and competitiveness. Banks, however, warn that allowing stablecoins to function like interest-bearing deposits could siphon funds away from insured lenders, undermining a key source of bank funding and potentially increasing systemic risk.

White House Steps In

People familiar with the discussions say the White House meeting is intended to bring both sides “to the same table” and explore compromise language that could unlock progress in the Senate.

The administration’s intervention underscores how strongly it wants to see the bill enacted. During the campaign, President Trump actively courted the crypto industry, pledging to promote digital-asset adoption and position the United States as a global leader in financial innovation.

Although the White House declined to comment publicly on the meeting, the decision to host senior industry figures signals a willingness to engage directly in policy negotiations rather than leaving the process solely to lawmakers.

Crypto Industry Signals Support

Major crypto trade groups confirmed their participation and framed the talks as a constructive step toward long-term regulatory clarity.

Summer Mersinger, chief executive of the Blockchain Association, said the group was “proud to participate” in the discussions. The association represents leading crypto firms, including Coinbase, Ripple, and Kraken.

She said Congress has a clear opportunity to deliver “durable, bipartisan rules that protect consumers, foster responsible innovation, and ensure the United States remains a global leader in next-generation financial and internet technology.”

Similarly, Cody Carbone, chief executive of The Digital Chamber, credited the White House with helping bring opposing sides together, describing the meeting as a critical step in moving negotiations forward.

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Banks Remain Cautious

Banking groups, while participating in the discussions, remain wary of how stablecoin regulation could reshape the financial system. Their core concern is that stablecoins offering interest or rewards could effectively compete with traditional bank deposits—without being subject to the same capital, liquidity, and insurance requirements.

Industry representatives argue that large-scale migration of deposits into stablecoins could weaken banks’ funding bases, reduce their capacity to lend, and increase fragility during periods of financial stress.

These concerns have gained traction among some lawmakers, particularly those focused on financial stability and consumer protection, contributing to the Senate’s hesitation to advance the bill without further safeguards.

Why the Clarity Act Matters

The outcome of the White House-led talks could have far-reaching implications for the U.S. financial system and the global crypto industry.

Without clear federal rules, crypto firms continue to operate in a fragmented regulatory environment, facing enforcement actions from multiple agencies and uncertainty over which rules apply to which products. Industry leaders argue this uncertainty discourages investment and innovation, pushing activity offshore.

For banks, the legislation represents a test of how far traditional financial regulation should adapt to new digital instruments without undermining the stability safeguards built after the 2008 financial crisis.

A Delicate Balancing Act

The White House meeting highlights the central challenge facing policymakers: how to encourage innovation in digital finance while preserving financial stability and consumer protections.

A compromise on stablecoins—potentially involving limits on interest-like features, reserve requirements, or enhanced oversight—could determine whether the Clarity Act advances this year or remains stalled.

For now, both sides appear willing to talk. Whether that dialogue results in legislative breakthrough will likely determine not only the future of U.S. crypto regulation, but also the country’s role in shaping the next phase of global financial technology.

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photo source: Google

By : Elsie Njenga

3rd February, 2026