The White House will convene a working-level meeting at 1 PM ET today between banks and crypto firms to discuss stablecoin yields, according to journalist Eleanor Terrett.
Why stablecoin yield is a flashpoint
The debate over whether stablecoins should be allowed to pay yield has become a key point of friction between banks and digital asset firms.
Banks are lobbying for a ban on stablecoin yields, arguing that yield-bearing stablecoins could drive deposit flight from traditional bank accounts.
Standard Chartered has projected potential outflows of $500 billion from industrialized nations and $1 trillion from emerging markets by 2028 if stablecoin yield provisions remain unrestricted.
Where industry groups differ
Crypto firms have pushed back, arguing the proposed restrictions are aimed at limiting competition.
However, not all major issuers are aligned.
Tether has voiced support for a draft US market structure bill that includes a ban on stablecoin yields, Brogan Law reported last week.
Legislative backdrop
The meeting comes as the Senate Agricultural Committee advances separate market structure legislation amid intensifying lobbying and political divisions over digital asset policy.
The White House session is intended to encourage an open, collaborative discussion rather than a confrontational one, with senior policy leaders and industry trade associations from both banking and digital asset sectors expected to participate.
