White House sets February deadline to settle $6.6 trillion fight over stablecoin yields

The White House convened banks and crypto representatives and set an end‑of‑February deadline to resolve the "stablecoin yield" debate, directing parties to find common ground on whether platforms may offer rewards on stablecoins; the process was described as exposing a structural fault line between digital‑dollar activity and deposit‑taking business models ^[1].

The discussions occur against rapid growth in stablecoins: one report says stablecoin volumes reached a historic $10 trillion, increasing the scale of digital‑dollar flows that intersect with banking and payments infrastructure ^[2].

Market and policy shifts are accelerating: major banks are entering the stablecoin arena as regulatory barriers fall, while some legislators remain skeptical about treating stablecoins as money — the UK House of Lords questioned whether tokens function mainly as on‑ and off‑ramps rather than the future of money ^[3][4].

The February deadline frames inter‑sector negotiations amid rising stablecoin volumes and new entrants; regulators and lawmakers across jurisdictions are increasing scrutiny of how stablecoin incentives and services interact with traditional banking and payment systems ^[1][2][3][4].