#WhiteHouseTalksStablecoinYields

Key progress in White House stablecoin yield talks, with banks showing first signs of flexibility—but core stalemate remains.

The negotiations—critical to advancing the CLARITY Act after it stalled in the Senate—center on one question: Should stablecoin holders earn interest-like yields?

Meeting tone: Ripple’s CLO called Monday’s session “productive, with compromise in the air.” Unlike the Feb. 2 opening round, this was a smaller, closed working group.
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Core divide: Banks have maintained a “banning principle” —total prohibition of any yield or reward tied to stablecoin holding/use. Their warning: allowing yields could drain ~$50 billion in deposits from the traditional system by 2028, hitting “main street lending.”

Key shift: For the first time, banks signaled openness to “consider proposed exemptions.” While resistance to transactional rewards remains, talks now focus on narrowly defining “permitted activities.”
· 📜 Bill status: The CLARITY Act—already passed by the House—designates the CFTC as primary regulator for most digital commodities. It’s now stalled in the Senate Banking Committee. Trump admin is pushing for resolution by end of February.