White House Hosts Banks, Crypto Talks to Resolve Stablecoin Deadlock

Key Insights

• The White House is hosting a second meeting with banks and crypto groups on Tuesday, February 10, to discuss stablecoin rules.
• Big banks like Bank of America, JPMorgan, and Wells Fargo are invited, alongside crypto trade reps from Coinbase, Ripple, Circle, etc.
• Kevin Warsh, the Fed’s incoming chair, advocates for a fresh Fed-Treasury agreement amidst an $8.3B liquidity operation on February 10th.

The full adoption of crypto by governments across the world is slowly taking shape. However, this move consistently encounters obstacles, as there is currently a conflict between banks and the cryptocurrency industry.

The U.S. is signing bills into law that are making crypto more accessible to traditional finance. The banking institutions have not taken this lightly.

The pro-crypto president, Donald Trump, has gone ahead and laid the groundwork for a less hostile environment through changes in the administration. For instance, the incoming Fed chair, Kevin Warsh, has already hinted at a fresh accord.

Against this backdrop, additional meetings are underway to resolve the impasse. Senator Cynthia Lummis has been in the forefront in rallying congressmen into hastening the Market Structure bill. Will the deadlock be broken now?

White House To Host Banks and Crypto Groups

Following the stablecoin deadlock, the White House (WH) will have a second closed-door meeting on February 10 with the banks and crypto industry.

Representatives from banks and the cryptocurrency industry would be discussing about stablecoin yields. The crypto industry aims to reach an agreement with the banking sector. The banks fear competition from stablecoin rails that yield from network activities such as staking.

For instance, there will be people from JP Morgan, Bank of America, Wells Fargo, Coinbase, Ripple, and Circle there. The main topic of the conversation will be whether people who own stablecoins can make money. This feature gives the crypto industry an edge over banks.

Banks are worried that this could cause $6.6 trillion in deposits to leave. Crypto companies say yields are important for competition and point to Coinbase’s $355 million in third-quarter revenue as proof.

The GENIUS Act says that issuers cannot directly interest people. However, the issue of platforms sharing income remained unresolved.

There was no agreement at the first meeting held on February 2. The White House has given everyone until the end of February to come to an agreement. The agreement is necessary to move the CLARITY Act forward.

The House passed the CLARITY Act in July 2025, but it remains stuck in the Senate. So, the aftermath of the meeting could have a big effect on the floor of the Senate. It could slow down regulatory progress or make the crypto space even more uncertain.

Kevin Warsh Calls For Fed-Treasury Accord Amidst Liquidity Injection

While the US is still in governance of the financial markets, its decisions continue to impact the markets. Kevin Warsh, the new incoming chair of the Federal Reserve, wants a new agreement between the Fed and the Treasury. This deal would change how the Treasury and the Fed deal with rates, debt, and financing.

Warsh wants things to work together better. But he wants the Fed to keep its balance sheet smaller and hold more short-term Treasury bills.

There are also suggestions for limiting large bond-buying programs. But history tells us there are risks involved. In the 1940s, yield curve controls kept borrowing cheap but caused prices to rise.

In the meantime, liquidity injections were happening on the same day as the meeting. The Fed will put $8.3 billion into the markets. This amount is part of a $55 billion plan that includes buying Treasury bills to make repo easier.

So, Warsh’s agreement could make this kind of support official. Lower yields may come next. Because of this, risky assets like Bitcoin could go up a lot.

Altogether, the WH meeting could be what crypto and the market in general need to regain their spark. However, it was dependent on the success of the meeting.

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