#WhiteHouseTalksStablecoinYields

The Battle Over Digital Dollar Interest: What’s Happening at the White House?
​In recent weeks, Washington has been hosting a monumental negotiation that could fundamentally reshape the future of the cryptocurrency sector. High-level meetings at the White House have converged on a single, pivotal question: Can stablecoins offer interest or yield?
​This is far more than a technical debate; it is a trillion-dollar war over deposits, pitting the traditional banking system directly against the new generation of Decentralized Finance (DeFi).
​The Banks' Fear: A $6 Trillion Migration Risk
​Traditional Wall Street banks are vehemently opposed to stablecoins offering interest. The bankers' argument is crystal clear: If a user earns less than 1% in a standard bank checking account while a stablecoin wallet offers a 3-5% yield, capital will rapidly migrate from banks to the crypto ecosystem.
​The banking lobby, led by giants like Bank of America, warns that such a scenario could trigger an outflow of up to $6 trillion in deposits. From their perspective, this could paralyze banks' lending capacity and jeopardize the real economy—the "Main Street." Consequently, they have proposed to the White House a total ban on paying yields to stablecoin holders, regardless of the terminology used.
​The Crypto World’s Response: Innovation Cannot Be Halted
​On the other side of the coin are crypto titans and major exchanges like Coinbase. Industry representatives argue that yield is a fundamental "feature" of stablecoins. According to them, banning users from earning returns on their digital assets would not only drive innovation out of the U.S. but also weaken the global dominance of the U.S. dollar in the digital realm.
​Considering how vital "interest-bearing digital dollars" are as a savings tool, especially in high-inflation regions, a U.S. ban could provide a competitive advantage to rivals like China’s digital yuan in the global race.
​The Major Deadlock: The CLARITY Act
​At the heart of these discussions lies the CLARITY Act (Creating Legal Accountability for Rogue Innovators and Technology Act), which is currently pending in the U.S. Senate. As of early February 2026, two rounds of closed-door meetings have yet to produce a definitive consensus. While White House officials describe the atmosphere as "constructive," the chasm remains deep between the banks' demand for a "total ban" and the crypto sector’s insistence on "financial freedom."
​At this juncture, the White House must maintain a delicate balance between preserving financial stability and fulfilling the vision of making the U.S. the "crypto capital of the world." If yields are banned, stablecoins will remain merely a payment tool; if they are permitted, the banking system will stand on the brink of a transformation unlike anything we have seen before.
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