White House Pushes Crypto and Banks Toward Stablecoin Compromise

A recent White House meeting aimed at easing tensions between crypto firms and Wall Street banks underscored how difficult progress remains on U.S. crypto market structure legislation. Crypto industry representatives significantly outnumbered banking participants at the gathering, and many left with the impression that traditional financial institutions are still reluctant to move quickly toward compromise.

According to people familiar with the discussions, the White House delivered clear instructions to both sides: reach an agreement on revised language around stablecoin yields before the end of the month. Stablecoin rewards and yield mechanisms have become one of the most contentious issues in shaping federal crypto regulation, with banks warning that yield-bearing stablecoins could threaten their core deposits and lending models.

The meeting, led by President Donald Trump’s crypto adviser Patrick Witt, lasted more than two hours and took place in the White House’s Diplomatic Reception Room. Policy leaders from crypto companies and major banking trade associations debated whether stablecoins should be allowed to offer yield or rewards. While no immediate breakthrough occurred, the talks are expected to continue with a smaller group focused on drafting concrete legislative language.

Banking groups, including the American Bankers Association and the Financial Services Forum, said they remain engaged in the process and emphasized the importance of protecting financial stability, local lending, and the safety of the U.S. banking system. Crypto advocates, meanwhile, stressed the urgency of action, warning that delays in the Senate reduce the likelihood that comprehensive crypto legislation will pass this year.

Industry leaders such as Digital Chamber CEO Cody Carbone and Blockchain Association CEO Summer Mersinger described the meeting as meaningful progress toward bipartisan digital asset regulation. Representatives from Coinbase, Circle, Ripple, Crypto.com, and the Crypto Council for Innovation also participated.

The legislation has already passed the House and cleared one Senate committee, but major hurdles remain, including Senate Banking Committee approval and Democratic demands for stronger ethics, anti-corruption, and illicit finance provisions. Complicating matters further, the federal government entered a partial shutdown the same day as the meeting, raising concerns about how quickly negotiations can move forward.

Despite these challenges, the White House appears determined to push stakeholders toward compromise, signaling that stablecoin policy will play a central role in the future of U.S. crypto regulation.