Story perspectives

White House Fails to Resolve Crypto-Bank Stalemate

2/4/2026

Summary

Story summary

On February 2, the White House hosted a meeting to resolve the stalemate between U.S. banks and cryptocurrency firms over stablecoin rewards, but no agreement emerged.
Banks push prohibiting interest on stablecoins, arguing it could destabilize funding.
Crypto firms counter that rewards are essential to attract customers.
The White House set a February deadline for a consensus.
Further meetings are anticipated to address these issues.

History

Historical Context

The Glass-Steagall Act, enacted on June 16, 1933, established a crucial separation between commercial and investment banking to stabilize the financial system after the Great Depression. Over time, regulatory loopholes weakened these protections, culminating in the 1999 Gramm-Leach-Bliley Act, which repealed key provisions. Today, tensions between U.S. banks and cryptocurrency firms over stablecoin rewards reflect ongoing debates about financial regulation and stability.

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Story summary

On February 2, the White House hosted a meeting to resolve the stalemate between U.S. banks and cryptocurrency firms over stablecoin rewards, but no agreement emerged.
Banks push prohibiting interest on stablecoins, arguing it could destabilize funding.
Crypto firms counter that rewards are essential to attract customers.
The White House set a February deadline for a consensus.
Further meetings are anticipated to address these issues.

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