Key highlights :
- White House hosts third high-level meeting on stablecoin yields with Coinbase, Ripple, and a16z Crypto representatives in attendance.
- Banks warn yield-bearing stablecoins could draw deposits away from traditional accounts, raising concerns for lending and financial stability.
- Crypto firms push for DeFi-based yield models, while regulators signal faster rulemaking as talks move toward a possible framework.
A new round of discussions on stablecoin yields begins today at the White House and the representatives include some of the biggest policymakers, crypto firms, and banking leaders. The stablecoin yield issue meet up is an attempt to sort differences on one of the hottest issues in digital finance.
According to crypto journalist Eleanor Terrett, the third Stablecoin Yield Issue invitations were sent out a day earlier. Participants confirmed so far include Coinbase Chief Legal Officer Paul Grewal, Ripple Chief Legal Officer Stuart Alderoty, and policy lead Miles Jennings from a16z Crypto. Several banking representatives are also expected to attend, even though full attendance details are yet to be disclosed.
White House Stablecoin Yield Talks Begin
The meeting follows earlier sessions that have taken place over the past few weeks. Each round has focused on how stablecoins should be regulated, especially when it comes to yield or interest-bearing features. Even though the exact agenda for this third meeting has not been publicly released, the discussions have gained a lot of attention as both sides continue to present their ‘distinct’ positions.
🚨NEW: Attendees at this morning’s meeting will include @iampaulgrewal from @coinbase, @s_alderoty from @Ripple, and @milesjennings from @a16z, plus some banking and crypto trade reps. https://t.co/IjVRVnjNlW
— Eleanor Terrett (@EleanorTerrett) February 19, 2026
A recent proposal from the Digital Chamber has added fresh direction to the talks. The group suggested allowing “payment stablecoins” to generate yield through decentralized finance mechanisms. It also proposed that idle balances could earn interest, provided there are protections in place for users. Banking representatives have shown cautious openness to this approach, though concerns remain around how such yields would be structured and regulated.
Despite the ongoing debate, industry insiders see recent meetings as being constructive. One banking source described the current stage of negotiations as showing “productive momentum,” which implies that a framework could emerge if both sides find common ground.
Regulatory developments outside the White House are also influencing the discussion. At the ETHDenver conference, SEC Chair Paul Atkins recently shared plans for faster rulemaking on crypto. The proposals include closer cooperation with the Commodity Futures Trading Commission on asset classifications, updated rules for crypto lending, and clearer guidance for wallet providers and broker-dealers dealing with non-security tokens (such as payment stablecoins).
The meeting will focus on if stablecoins should offer yield to users. Banks believe that yield-bearing stablecoins could compete directly with traditional savings accounts. For them, this could drive deposits away from banks and into crypto platforms, and could affect lending capacity and financial stability of the institutions. Some projections presented in earlier meetings predicted that as much as $500 billion in deposits could move over time if yield-bearing stablecoins become widespread.
Regional banks are expected to feel the heat, given their reliance on deposits for local lending activity. Banking representatives have therefore pushed for strict definitions of what stablecoin issuers and exchanges are allowed to offer, including limits on yield features for platforms that do not issue the stablecoins themselves.
Crypto firms, on the other hand, have maintained a different position. Companies such as Coinbase and Ripple have argued that on-chain rewards and decentralized finance mechanisms represent a distinct model from traditional bank interest. Industry groups also stress that flexible yield models can support innovation and strengthen the competitiveness of the US in the global digital finance sector.
The second meeting earlier this month reportedly involved more detailed technical discussions, although it did not produce a fruitful agreement.
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