White House to meet with crypto firms and banks on stablecoin yield this afternoon

The White House will convene a working-level meeting today at 1 PM ET between crypto firms and banks to facilitate discussions on stablecoin yields, according to journalist Eleanor Terrett.

The issue has become a key flashpoint between the two industries and remains a critical hurdle to the passage of the pending crypto market structure bill. Banks are lobbying for a ban on stablecoin yields, arguing that they could trigger deposit flight from traditional accounts.

Standard Chartered projects potential outflows of $500 billion from industrialized nations and $1 trillion from emerging markets by 2028 if yield provisions remain unrestricted.

Crypto firms counter that these restrictions are an attempt to stifle legitimate competition.

However, not all industry players seem to agree. Tether has voiced support for a draft US crypto market structure bill that includes a ban on stablecoin yields, Brogan Law reported last week.

The meeting comes as the Senate Agricultural Committee advances separate market structure legislation amid growing lobbying efforts and political divisions over digital asset policy.

The goal of the meeting is to foster an open, collaborative dialogue and avoid conflict, with the participation of senior policy leaders and industry trade associations in crypto and banking.