Crypto Quill

Top crypto executives from Coinbase, Ripple, and Andreessen Horowitz walked into the White House complex this morning for a third high-stakes meeting about one question that now divides Washington and Wall Street: should stablecoins pay interest to holders? The closed-door session could shape the future of digital dollars and decide whether billions flow out of traditional bank accounts.

The clash is simple but massive. Crypto firms want to offer yield-bearing stablecoins that earn money through decentralized finance, or DeFi, while big banks warn the move could pull deposits away and hurt lending across America.

Regulators have watched stablecoin supply explode past $170 billion this year. Most of those dollars sit idle or earn zero interest. Crypto companies now argue they can put that money to work safely and share the profits with everyday users.

Banks fire back that any product paying competitive yields would act like an unregulated bank account. Customers could shift billions overnight from checking and savings accounts that fund home loans and small-business credit.

One banking lobbyist told reporters outside the meeting, “If a stablecoin pays 5% with no withdrawal limits and instant transfers, why would anyone keep money in a bank?”

Who Sat at the Table

The guest list shows how serious the White House is taking the issue.

Key attendees include:

• Paul Grewal, Chief Legal Officer at Coinbase
• Stuart Alderoty, Chief Legal Officer at Ripple
• Miles Jennings, policy head at a16z Crypto
• Senior staff from the Treasury Department and Federal Reserve
• Representatives from major banking trade groups

This marks the third dedicated session on stablecoin yields in six months, a rapid pace that signals regulators want answers fast.

The Two Very Different Visions

Crypto leaders push a future where anyone holding USDC, USDT, or newer tokens can earn 4% to 8% simply by keeping money in their wallet. They point to on-chain lending platforms and Treasury-bill investments that already generate those returns.

“People should earn interest on their own money no matter where they store it,” Grewal said on his way into the meeting. “Technology now makes that possible without taking huge risks.”

Banks and some regulators counter that only insured deposits should pay interest. They fear a repeat of the 2023 regional-bank scares if depositors flee to crypto at the first sign of trouble.

Regulators Hint at Faster Rules

Sources close to the talks say the White House wants a framework before the end of the year. Treasury officials have floated several options:

• Let existing stablecoin issuers apply for limited banking licenses
• Create a new “stablecoin yield” license with strict rules
• Cap yields or require issuers to keep extra reserves

No final decision came out of today’s meeting, but participants described the tone as “constructive and urgent.”

One crypto executive leaving the building told reporters, “We’re closer than we’ve ever been to real clarity. Everyone in that room knows the train has left the station on stablecoins. The only question is how to make it safe for passengers.”

What It Means for Your Money

If regulators green-light yield-bearing stablecoins, millions of Americans could soon earn interest on digital dollars they already use for payments or trading. That extra income might beat most savings accounts.

But if banks win major restrictions, the biggest advantage of next-generation stablecoins could vanish before products even launch.

Either way, the quiet conference room where today’s meeting took place might have just decided the next chapter of how America saves, spends, and earns interest in the digital age.

The stablecoin yield debate has heated up across social media all week. Jump into the conversation and let us know where you stand. Do you want your stablecoins to pay interest like a bank account, or should yields stay off-limits? Share this story with #StablecoinYield and tag a friend who holds crypto. The more voices regulators hear, the bigger impact we all make.