Banks push for total ban on stablecoin interest at White House meeting

During a second White House meeting convened with banking and crypto industry representatives on stablecoin yields, the banking sector has reportedly proposed a hardline principle that amounts to a total ban on interest payments. According to a White House document shared on X by Decrypt senior reporter Sander Lutz, banking representatives argued for prohibiting any monetary or non-monetary compensation for holding, using, or owning payment stablecoins. They also insisted that any exceptions must be "extremely limited" so as not to undermine the principle of the ban. This stance is even stricter than the latest draft of a market structure bill, which permitted yield payments for certain stablecoin activities. A person familiar with the meeting described the discussion as productive but noted that "nothing was resolved." Future talks are expected to move to the Senate Banking Committee and industry self-regulatory bodies. While some crypto firms are reportedly showing a willingness to accept the banks' demands, Coinbase is said to be maintaining its opposition.