White House’s Crypto Yields Deadlock

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The White House has basically cornered the banking and crypto industries in a room with a single chair, demanding they sort out stablecoin yields by February. Because nothing says “progress” like a group of people arguing over a yield that might as well be a unicorn.

Following a meeting that was probably more about networking than actual progress, Patrick Witt, the guy who probably has a PhD in “How to Sound Important,” said, “We’ve cracked some impossible problems! I’m sure we’ll figure this one out too!” Because, of course, nothing says “confidence” like a 50% chance of success.

He said,

“Over the course of the past few months, we have achieved breakthroughs on several seemingly intractable policy issues. I am confident we will be able to resolve this one (stablecoin yield), too.”

The bill’s momentum ground to a halt mid-last month after Coinbase pulled its support, citing a ban on stablecoin yield, which has become a key deal-breaker. Because nothing says “I’m done” like a company that’s basically a cryptocurrency version of a toddler throwing a tantrum.

Interestingly, Coinbase’s stance was quite different from crypto VC a16z and Ripple, which are the other two key donors behind the industry’s largest super PAC, Fairshake. Because, of course, the crypto world is just one big family where everyone agrees on everything.

In late January, the White House instructed Coinbase to return to the negotiating table. But it has not been smooth sailing. Because nothing says “smooth sailing” like a meeting where everyone’s secretly plotting to sabotage each other.

According to the Wall Street Journal (WSJ), top banking officials, including JPMorgan’s Jamie Dimon, clashed with Coinbase CEO Brian Armstrong over the stablecoin rewards at the World Economic Forum meeting in Davos. Because nothing says “civilized debate” like a bunch of bankers and crypto guys screaming at each other in a Swiss ski lodge.

Banks aren’t backing down

Unsurprisingly, bankers have maintained their strong opposition to stablecoin yields, even after the recent White House talks. Because, obviously, they’re just looking out for the public’s best interest.

In a statement, the American Bankers Association (ABA) called for a ‘thoughtful, effective policy’ around crypto, adding that,

“As we shared in the meeting, we must ensure that any legislation supports the local lending to families and small businesses that drives economic growth and protects the safety and soundness of our financial system.”

Reacting to the bankers’ statement, Galaxy’s head of research, Alex Thorn, doubted the sector’s willingness to compromise on the bill.

“It reads nice, but it doesn’t really sound like they are willing to compromise here.”

But Summer Mersinger, the CEO of the Blockchain Association, a body representing over 100 crypto firms, including Coinbase, hailed the White House meeting as a ‘step forward’ to advance the bill. Because, of course, a meeting where no one actually agrees on anything is a “step forward.”

She noted,

“Today’s White House meeting was an important step forward in the effort to deliver bipartisan digital asset market structure legislation to the President’s desk.”

A similar optimistic tone was echoed by another crypto trade union, The Digital Chamber (TDC). Because, obviously, the only thing more optimistic than a crypto group is a group of people who’ve never heard of the word “realism.”

Chance of bill’s passage jumped to +60%

But despite the mixed sentiment from both sides, Polymarket’s odds of passing the bill this year slipped from 65% to 60% after the White House talks. Because, of course, the more people argue, the less likely something is to happen.

It’s worth noting that the chance of advancing the bill had increased from 50% to 65% in the past two days ahead of the meeting. Because, hey, maybe the universe is trying to give us hope.

Even so, it remains unclear whether a compromise will be reached by the end of the month. Because, of course, nothing says “clarity” like a bunch of people who can’t agree on anything.

Final Thoughts 

  • Crypto trade unions appeared ‘optimistic’ about the progress of the market structure bill following the White House meeting. Because, of course, they’re all just waiting for the other shoe to drop.
  • But Galaxy’s Thorn was concerned that a stablecoin yield compromise may remain elusive, preventing the bill from advancing. Because, obviously, the only thing more elusive than a stablecoin yield is a consensus among bankers and crypto folks.

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2026-02-03 12:17