The post Stablecoin Wars: Inside the White House Battle Between Crypto and Traditional Banks appeared on BitcoinEthereumNews.com.

TLDR: Banks presented written prohibition principles limiting crypto’s ability to offer stablecoin rewards Crypto industry demands broad definitions of permissible activities allowing competitive yields Both sides described talks as productive but failed to reach compromise before March 1 deadline Permissible account activities remain the main battleground between traditional and digital finance   Crypto firms and banking institutions met for a second round of White House yield talks focused on stablecoin rewards. The session revealed clear battle lines between traditional finance and digital asset companies. Banks arrived with written demands limiting crypto’s ability to offer yield products. Crypto representatives pushed for broader definitions, allowing competitive rewards programs. No final agreement emerged despite productive negotiations between the opposing sides. Banks Draw Red Lines on Stablecoin Rewards Banking institutions presented formal “prohibition principles” at the White House meeting. The document outlined strict boundaries for stablecoin yield offerings. Traditional banks view crypto rewards as direct threats to their deposit business. The written framework represents their minimum acceptable terms for any compromise. Eleanor Terrett shared details from sources present during the negotiations. Banks initially refused to discuss any exemptions for transaction-based rewards. The current proposal shows slight movement with language about “any proposed exemption.” This shift suggests banks recognize some flexibility may be necessary. NEW: Details from the White House stablecoin yield meeting, per banking and crypto sources in the room: People on both sides called the meeting ‘productive,’ but, again, no compromise was reached by the end of the meeting. However, deal specifics were discussed in more detail… pic.twitter.com/w5nPlG1DLi — Eleanor Terrett (@EleanorTerrett) February 11, 2026 Major financial institutions coordinated their position through trade associations. Goldman Sachs, JPMorgan, Bank of America, and Wells Fargo participated in the talks. Citigroup, PNC Bank, and US Bank also sent representatives. The Bank Policy Institute, American Bankers Association,…

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Filed under: News - @ February 12, 2026 4:27 am