White House talks aimed at advancing crypto market-structure legislation hit a wall on Monday, with banking and crypto representatives unable to settle their differences over stablecoin yield.
The meeting took place at the Eisenhower Executive Office Building and included major players from both sides.
Cryptocurrency exchange Coinbase was among the industry representatives present, alongside trade groups from both the digital asset and traditional banking sectors.
Stablecoin Yield Emerges As The Sticking Point
At the center of the dispute is whether crypto platforms should be allowed to offer users interest or rewards on stablecoins held in their accounts.
Banks have pushed back hard against this, fearing it could trigger an exodus of customer deposits toward higher-yielding crypto alternatives.
Coinbase has countered that it is simply giving customers a better deal.
A memo from the Digital Chamber, a crypto industry trade group, indicated that while the meeting did not produce a resolution, it was framed as the first of several discussions planned through the end of February.
Trump's Crypto Bill Faces Congressional Hurdles
The Biden administration's regulatory crackdown left the crypto industry bruised and looking for stability.
President Donald Trump has positioned himself as a friendlier figure, promising at Davos to sign market-structure legislation soon.
But internal disagreements have slowed progress.
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Last month, the stablecoin yield issue derailed discussions at the Senate Banking Committee.
A separate version of the bill has moved through the Senate Agriculture Committee and passed the House, but unresolved tensions continue to cloud its future.
Market Jitters As Uncertainty Drags On
Patrick Witt, executive director of the President's Council of Advisors for Digital Assets, has been working to broker a compromise.
The administration sees the bill as essential for giving the crypto sector long-term regulatory clarity that can survive future political shifts.
The prolonged uncertainty has weighed on markets.
Bitcoin has dropped nearly 40% from its early October peak, with investors growing impatient over the lack of legislative progress.
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