White House continues negotiations over crypto bill

The White House is continuing negotiations over cryptocurrency market-structure legislation, with discussions focusing on stablecoin yield policies.

A meeting at the Eisenhower Executive Office Building involved industry groups, including Coinbase, and banking representatives, but no agreement was reached on whether exchanges should be allowed to offer yield or rewards on stablecoins.

A memo from the Digital Chamber noted that participants reviewed existing proposals and identified disagreements, with plans to continue talks into February.

The administration aims to resolve this issue to facilitate passage of the bill, which has faced delays in Congress.

Some banks have called for bans on stablecoin rewards over concerns they could cause deposit outflows, while Coinbase has defended offering such services.

Bitcoin has dropped nearly 40% from its October peak, partly due to regulatory and legislative delays.

🔗 Source: Bloomberg

🧠 Food for thought

Implications, context, and why it matters.

Coinbase is fighting for its business model

White House talks matter for Coinbase. Bloomberg data projected stablecoin revenue could reach $1.3 billion in 2025, which could cushion results during crypto market downturns 1.
In Q3 2025, Coinbase net revenue from stablecoins totaled $243 million. That equaled 56% of net income, tying stablecoins closely to profits 2.
The clash traces to the GENIUS Act, a prior law. It barred stablecoin issuers (the companies that create and manage stablecoins) from paying interest directly, while third-party platforms could offer rewards 1.
Tensions rose after Coinbase CEO Brian Armstrong pulled support for the Senate Banking Committee draft. The committee then delayed its planned markup (the step where a committee debates and amends a bill), leaving the bill stalled as talks continue 3.

The talks could shape future digital-asset rules

The result could shape whether stablecoins act like closed fintech products or open money that earns value across platforms. That choice affects how yield can exist in the ecosystem 4.
Coinbase policy chief Faryar Shirzad said banning rewards could hurt the U.S. dollar abroad. He warned it could hand an edge to China, which he said planned to offer interest on its digital yuan starting Jan. 1, 2026 1.
Some banks back a plan that limits rewards to licensed banks. Crypto advocates say it would favor incumbent institutions, though the policy debate remains unsettled 5.
Even with new limits, Bloomberg reported industry insiders expect crypto firms to route rewards through other methods. They compared the cycle to a regulatory game of “whack-a-mole” 1.