TLDR:
- White House schedules closed-door meeting Feb 10 to break legislative deadlock over stablecoin yield
- Banking groups warn up to $6.6 trillion in deposits threatened by yield-bearing stablecoin loopholes
- Coinbase withdrew support after Senate changed yield language, generating $355M stablecoin revenue in Q3
- Senate remains divided with no unified bill despite House passing CLARITY Act in July 2025
The White House will convene a closed-door meeting on February 10, 2026, to address the primary obstacle preventing passage of comprehensive crypto market structure legislation.
Stablecoin yield regulations have emerged as the central point of contention between banking institutions and cryptocurrency platforms.
The administration seeks to broker compromise language by month’s end, aiming to advance legislation that has stalled in the Senate since the House passed the CLARITY Act in July 2025.
Banking Sector Opposes Yield-Bearing Stablecoins
Traditional financial institutions view yield-bearing stablecoins as an existential threat to their deposit base.
Bank trade groups have warned that community banks could lose up to $6.6 trillion in deposits if current regulatory loopholes remain open.
The concern centers on competitive disadvantages, as conventional bank accounts offer minimal interest rates while crypto platforms provide yields exceeding 3 percent.
The GENIUS Act previously banned stablecoin issuers from directly paying interest to holders. However, banking groups identified a significant loophole in August 2025.
Exchanges and platforms can still distribute reserve income through rewards programs and incentive structures. This workaround has become the most contentious issue blocking comprehensive market structure legislation.
Senate Banking Committee released amended language in January 2026, but progress halted after yield provisions changed.
The modifications prompted Coinbase to withdraw its support for the legislation. Meanwhile, the Senate Agriculture Committee advanced its version on January 29, 2026, though only along partisan lines. The Senate remains without unified legislative text.
The legislative fragmentation reflects deeper policy disagreements about cryptocurrency’s role in the financial system.
Both committees have jurisdiction over different aspects of digital assets, complicating efforts to produce cohesive regulations. Without consensus on stablecoin yield, neither committee can advance to floor consideration.
Crypto Platforms Defend Revenue Streams
Cryptocurrency exchanges argue that yield restrictions protect incumbent banks at the expense of market competition. For platforms like Coinbase, stablecoins represent substantial revenue sources.
The company generated $355 million in stablecoin-related revenue during the third quarter of 2025 alone. Annualized projections suggest this revenue stream could exceed $1 billion.
Brian Armstrong referenced the yield dispute when withdrawing support for Senate proposals. The position reflects broader industry concerns about regulatory frameworks that favor traditional finance.
Crypto advocates maintain that yield bans would stifle innovation and limit consumer choice in financial products.
The White House intervention signals recognition that Senate divisions require executive mediation. Without administrative pressure, the legislative process could extend indefinitely.
Political calendars present additional complications, as election-year dynamics typically reduce appetite for complex financial legislation.
Even if compromise language emerges, significant procedural hurdles remain. Senate floor passage requires 60 votes if opponents force debate.
The House version contains broader provisions than Senate drafts, necessitating conference committee reconciliation.
According to the Bull Theory analysis, resolving the yield question represents only the first step toward final passage.
The February 10 meeting carries unusual weight for cryptocurrency regulation. Success could unlock months of legislative gridlock. Failure would extend policy uncertainty affecting billions in market capitalization.