Major banks such as Bank of America, JPMorgan Chase, and Wells Fargo have been invited to participate in next week’s White House crypto meeting. This marks the first time that representatives from the banking sector will join such a high-level policy discussion, with the core agenda focusing on one of the crypto market’s most sensitive issues—stablecoin yields. The meeting is closely tied to the ongoing "Crypto Market Structure Bill," and the executive director of the White House Crypto Committee has urged all parties to reach a consensus by the end of this month.
Meeting Background
The White House will host a new round of cryptocurrency meetings next week, with a particular focus on stablecoin yield issues. Unlike previous sessions, this meeting will, for the first time, include senior policy staff from several major banks. While the meeting remains at the staff level and will not include CEOs, major institutions such as Bank of America, JPMorgan Chase, and Wells Fargo have confirmed they received invitations.
This second round of discussions comes at a pivotal moment for US crypto regulation. The meeting is directly related to the ongoing "Crypto Market Structure Bill," and Patrick Vitte, executive director of the White House Crypto Committee, has urged all parties to reach an agreement by the end of the month.
Regulatory Status
The US Senate recently released an updated draft of the Digital Asset Market Structure Bill, which sets clear boundaries for stablecoin reward mechanisms. According to the latest text, digital asset service providers are prohibited from paying any form of interest or passive income to users who only hold payment stablecoins. This adjustment stems from a compromise proposal by Democratic Senator Angela Alsobrooks, who advocates allowing platforms to incentivize specific actions but opposes treating stablecoin balances as equivalent to bank deposits.
At the same time, under the GENIUS Act, stablecoin issuers are banned from paying interest directly. However, banking groups argue that this does not fully close the door for third-party platforms to offer interest-like returns.
Key Points of Contention
Banks are concerned that if crypto companies can offer high yields to stablecoin holders, it could trigger a significant outflow of traditional bank deposits. Such volatility would directly impact banks, especially community banks’ ability to lend.
In a joint letter organized by the American Bankers Association, banking groups warned, "If billions of dollars are diverted from community bank loans, small businesses, farmers, students, and homebuyers in our towns will suffer." The crypto industry counters that banks are using regulation as a pretext to stifle innovation and maintain regulatory barriers. Crypto firms argue that the banks’ proposals would weaken market competition and stifle innovation.
Policy Standoff
US Treasury Secretary Scott Besant stated at a recent congressional hearing, "I have always been an advocate for these small banks, and deposit volatility is highly undesirable." He pledged to continue working to ensure that stablecoin yield payments do not cause deposit instability. This stance appears to acknowledge, at least in part, the banks’ concerns.
Senior crypto industry figures and Trump administration advisors met on Monday to discuss several potential compromise solutions. The meeting, chaired by Patrick Vitte, executive director of the President’s Digital Asset Advisory Committee, brought together top representatives from both the crypto sector and traditional banking.
Market Impact
The stablecoin market is undergoing a structural transformation, shifting from static payment tools to yield-generating and asset management financial products. By the end of 2025, the market size of yield-bearing stablecoins has surpassed $20 billion, with total stablecoin supply increasing by more than 50% year-over-year.
Some experts predict that by 2026, the stablecoin market could more than double, reaching $1 trillion in circulation. Over 20% of active stablecoins are expected to offer embedded yield or programmable features. This trend is already influencing the market behavior of major crypto assets like Bitcoin and Ethereum. According to Gate market data, as of February 9, 2026, the price of Bitcoin stood at $70,460.8, with a market cap of $1.41T, accounting for 56.14% of the total crypto market. The price of Ethereum was $2,077.52, with a market cap of $252.82B and a market share of 10.04%. These core assets are becoming increasingly sensitive to macro policy and regulatory changes.
Legislative Process
Senate Banking Committee Chairman Tim Scott has indicated that he may push the crypto market structure legislation into the markup phase even without a fully bipartisan agreement. In addition to stablecoin provisions, the new draft incorporates bipartisan proposals from Cynthia Lummis and Ron Wyden, clarifying that software developers and infrastructure providers will not be classified as financial intermediaries solely for writing or maintaining code.
On the legislative timeline, the Treasury Department is required to finalize the GENIUS Act’s implementation details by July 18 of this year. Treasury Secretary Besant stated, "At this point, I see no obstacles. If we encounter any, we will notify you and the committee."
Changes in regulatory policy directly affect the pricing logic of stablecoins and the broader crypto market. When regulation tightens, the market typically experiences short-term volatility before gradually adapting to new compliance frameworks. Currently, Bitcoin and Ethereum, the two largest cryptocurrencies by market cap, are already showing increased sensitivity to macroeconomic factors.
Global Perspective
The EU’s Markets in Crypto-Assets Regulation (MiCA), Singapore’s Payment Services Act, and the Financial Action Task Force’s cross-border guidance each provide different models for stablecoin regulation. If the US fails to establish coherent stablecoin yield policies, both innovation and capital could migrate to more regulation-friendly jurisdictions. This could undermine America’s competitiveness in digital finance and diminish the global influence of its regulatory standards.
Globally, more than 80% of banks have developed digital asset strategies. An increasing number of countries are adopting frameworks and regulations to enable innovation. As global regulatory clarity improves, non-USD stablecoins are expected to grow in 2026.
Industry organizations such as the Bank Policy Institute and the American Bankers Association have voiced concerns that high-yield stablecoin accounts could trigger deposit outflows. With Treasury Secretary Besant pledging to finalize the GENIUS Act’s implementation rules by July 18, the countdown has begun for the debate over the boundaries between financial innovation and stability. As the US Treasury opens its doors to crypto policy, the global financial system is witnessing a fundamental transformation. The journey of stablecoins from fringe experiments to trillion-dollar financial infrastructure is now firmly on the agenda for next week’s White House meeting.
