$BTC STABLECOIN SHOWDOWN: White House Meeting Ends in Deadlock
The battle over U.S. stablecoin rules just escalated. A closed-door White House meeting between major banks and crypto firms ended without a deal on one explosive issue: stablecoin yield.
Banks arrived with written “prohibition principles,” pushing for a near-total ban on any rewards tied to holding, using, or storing stablecoins. Their argument? Yield-bearing stablecoins could siphon deposits from traditional banks and weaken lending.
Crypto firms fired back, calling rewards and incentives fundamental platform features-not systemic threats. They argue banning yield protects bank balance sheets, not consumers.
There was only a slight crack in the stalemate: banks hinted at limited flexibility if rewards are strictly transaction-based. Now, the White House wants compromise language finalized by March 1st.
This isn’t just policy drama-it’s the future of U.S. crypto market structure on the line.
Will yield survive… or get regulated out of existence?
