Next Week's White House Crypto Meeting to Focus on Stablecoin Yields, Bank Reps to Attend for First Time

On February 8, encrypted journalist Eleanor Terrett disclosed details of a White House cryptocurrency meeting set for next Tuesday. This marks the second meeting in a series, held again at the staff level—no CEOs of crypto or other firms have been invited, but senior policy officials from various banks will attend. Insiders say large banks including Bank of America, JPMorgan Chase, and Wells Fargo have been invited, with PNC Bank, Citigroup, and U.S. Bancorp also potentially included. Banking industry groups set to participate include the Bank Policy Institute, American Bankers Association, and Independent Community Bankers of America—though each is expected to send fewer representatives than usual. Banks are pushing to restrict crypto firms from offering interest on stablecoins, arguing the practice threatens their core business. They fear large sums flowing into high-yield crypto accounts will drain bank loan funds and trigger broader financial instability. Crypto firms, meanwhile, contend banks’ efforts aim to disrupt market competition, preserve regulatory barriers, and stifle innovation. Treasury Secretary Scott Benner appeared to align with some banks’ concerns in remarks Thursday: “I’ve long advocated for small banks, and deposit volatility is very undesirable. We’ll continue working to ensure stablecoin interest payments don’t cause deposit fluctuations.” The meeting ties into the future of the Cryptocurrency Market Structure Act (CLARITY Act). The stablecoin interest rate issue has emerged as a top White House priority—even overshadowing other contentious points like ethics or decentralized finance (DeFi). Patrick Witt, executive director of the White House Cryptocurrency Committee, is urging all parties to reach an agreement by the end of this month.