- The White House drove stablecoin talks this week, shifting control away from crypto and bank groups.
- Earning yield on idle stablecoin balances is now off the table after the latest round of meetings.
- Banks want a deposit outflow study included in the draft to track stablecoin impact on deposits.
A second round of White House stablecoin talks took place this week. The meeting was smaller than last week’s.
Crypto firms, trade groups, and bank associations all had seats at the table. This time, though, the White House took the wheel. The conversation stayed focused and moved in a clear direction.
Who Was in the Room and What Changed
According to Eleanor Terrett, reps from Coinbase, Ripple, and a16z attended the session. Trade groups like the Blockchain Association and the Crypto Council for Innovation also joined. Banks did not send individual representatives.
Instead, bank voices came through trade associations, including the American Bankers Association and the Independent Community Bankers of America.
The shift in tone was hard to miss. In earlier meetings, crypto firms and bank trade groups largely steered the conversation. This time, White House Crypto Council Executive Director Patrick Witt brought draft text that became the center of the discussion.
That draft addressed concerns banks raised in last week’s “Yield and Interest Prohibitions Principles” document. It also made clear that any restrictions on rewards would stay narrow.
🚨NEW: Per sources in the room, today’s stablecoin meeting was smaller than last week and included reps from @coinbase, @Ripple, @a16z, plus trade groups @BlockchainAssn and @crypto_council. No individual bank reps attended — bank voices were represented via trade associations…
— Eleanor Terrett (@EleanorTerrett) February 20, 2026
Where the Yield Debate Now Stands
Earning yield on idle balances has effectively been taken off the table. That goal had been a priority for the crypto industry. Now, the debate has shifted.
The focus is on whether crypto firms can offer rewards tied to specific user activities rather than just holding stablecoins.
Terrett reports that one crypto-side attendee said bank concerns seem tied more to competition than to actual deposit flight. Deposit flight had been the original worry driving bank pushback.
A bank-side source told Terrett they are still pushing for a deposit outflow study. That study would look at how payment stablecoins are growing and what effect they may have on bank deposits over time.
Banks also expressed support for proposed anti-evasion language in the draft. That language would give the SEC, Treasury, and the CFTC power to enforce a ban on yield payments for idle balances.
Civil penalties could reach $500,000 per violation, per day. For banks, that kind of enforcement mechanism is a win.
What Comes Next in the Stablecoin Talks
Both sides described the meeting as productive and constructive. Those words have become a pattern after each session. But the real test comes in the days ahead.
Bank trade groups plan to brief their members on what was discussed. They will then gauge how much room exists to compromise on stablecoin reward structures.
Terrett notes that one source said an end-of-month deadline does not seem unrealistic. Further talks are expected in the coming days.
The gap between crypto firms and banks is narrowing, but a final agreement is not yet in sight. The next few sessions will likely determine whether both sides can land on a language everyone can live with.