February 11 News, the second round of discussions at the White House regarding stablecoin regulation failed to reach an agreement between banks and crypto companies, with core disagreements centered on whether stablecoins can offer yields or rewards to users. Several crypto organizations engaged in discussions alongside major U.S. banks, but stalemated on key terms, causing another setback for the U.S. stablecoin regulatory framework.
The meeting was directly related to the proposed CLARITY Act. This legislation is based on the digital asset regulatory framework introduced by the GENIUS Act and has been passed by the House of Representatives, but the Senate has yet to advance it. The yield provisions are seen as the biggest obstacle. Banks are concerned that if stablecoins offer interest or rewards, it will divert traditional deposits, weaken banks’ ability to lend to households and small businesses, and impact financial system stability.
In contrast, crypto companies argue that reward mechanisms are essential tools for driving on-chain USD and decentralized finance applications. Without incentives, stablecoins can only remain as “payment tools,” making it difficult to build a richer financial ecosystem. They advocate for allowing limited reward models based on transactions or holdings under compliant conditions.
It has been disclosed that banks submitted a “prohibition principle” document at the meeting, advocating for a complete ban on any financial or non-financial rewards linked to stablecoins, accompanied by strict anti-avoidance clauses. Crypto executives, on the other hand, called for a more flexible regulatory approach. Although White House officials urged both sides to find a compromise by March 1, no substantial breakthrough has been achieved in this round of negotiations.
If the dispute continues, the CLARITY Act may remain shelved, and stablecoins could be limited to their most basic functions. Some industry insiders warn that excessive restrictions might push innovation toward more lenient overseas markets. The banking camp emphasizes that prioritizing the protection of the traditional credit system remains the primary goal.
Currently, both sides expect to continue negotiations. The final direction of stablecoin yield rules could profoundly influence U.S. digital asset policy and the development of the global on-chain USD ecosystem.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
Arthur Hayes says that if the U.S. intervenes in the Iran conflict for the long term, it could drive up Bitcoin prices
Arthur Hayes pointed out that since 1985, U.S. presidents have initiated military actions in the Middle East, and Trump continued this practice. He believes that prolonged U.S. involvement in Iran could lead to a Federal Reserve rate cut, supporting Bitcoin prices. The duration and cost of U.S. involvement remain uncertain.
GateNews1h ago
The Federal Reserve has a 93.6% probability of maintaining interest rates unchanged in March.
ChainCatcher News, according to Jinshi reports, CME "Federal Reserve Watch" shows that the probability of the Federal Reserve maintaining interest rates unchanged until March is 93.6%, and the probability of a 25 basis point rate cut is 6.4%. By April, the probability of a total 25 basis point rate cut is 22.6%, the probability of keeping rates unchanged is 76.2%, and the probability of a total 50 basis point cut is 1.2%. By June, the probability of a total 25 basis point rate cut is 43.9%.
GateNews3h ago
The probability that the Federal Reserve will cut interest rates by 25 basis points in March is only 7.4%.
BlockBeats News, March 1st, according to CME "Federal Reserve Watch," the probability of the Federal Reserve cutting interest rates by 25 basis points in March is only 7.4%, with a 92.6% chance of remaining unchanged.
The probability of the Federal Reserve cutting a total of 50 basis points by April is 1.4%, the probability of a total cut of 25 basis points is 23.3%, and the chance of remaining unchanged is 75.4%.
GateNews10h ago
What signals did the US SEC send behind the new 2% discount regulation for stablecoins?
The U.S. Securities and Exchange Commission (SEC) issued guidance on payment stablecoins on February 19, allowing broker-dealers to treat stablecoins with a 2% discount when calculating net capital, thereby giving them a legitimate status in capital calculations. This adjustment helps to integrate stablecoins into the mainstream financial system and promotes digital asset trading and services. Peirce's statement and the GENIUS Act could potentially change the market landscape, although federal and state frictions still exist. Nonetheless, this move paves the way for regulatory integration of stablecoins.
区块客12h ago
Weekly Preview | Gemini to Cease Operations in the UK; Federal Reserve Releases Economic Beige Book
News Preview:
Bitway (BTW) will be launched on March 2nd, supporting trading on Binance Alpha;
MANTRA Chain plans to upgrade to v7.0.0 software on March 3rd;
Gemini will cease operations in the UK, with customer accounts only able to withdraw starting March 5th;
HyperLiquid co-founder: 173,000 HYPE tokens will be unstaked and distributed to team members on March 6th;
RedStone (RED) will unlock approximately 40.85 million tokens at midnight Beijing time on March 7th, accounting for 16.13% of the current circulating supply, valued at about $6.2 million.
March 2nd
Macroeconomics:
At 22:45 on March 2nd, the US will release the February S&P Global Manufacturing PMI
PANews12h ago
Dialogue with Tether USAT CEO: Experiencing the acceleration of U.S. crypto policies, user experience is the biggest difference in the clear legislation.
Source: Anthony Pompliano Podcast
Compilation: Felix, PANews
Bo Hines, CEO of Tether USAT (a US-regulated, dollar-backed stablecoin launched by Tether), is also a former White House cryptocurrency advisor who participated in shaping U.S. digital asset policies during critical industry development periods.
Recently, Bo Hines gave an interview at the New York Bitcoin Investor Week, where he disclosed details of his work on cryptocurrency policy at the White House and discussed topics such as the mainstream adoption of stablecoins and why user experience is more important than returns.
PANews has summarized the highlights of the conversation. Below are the details.
Host: You previously worked at the White House and are now the
PANews17h ago
