White House Hosts Crypto Summit: Banks vs Coinbase in $500B Stablecoin Interest Battle

Emergency talks aim to resolve legislative standoff over stablecoin interest payments

Jan. 29, 2026 at 2:47pm

Got story updates? Submit your updates here. ›

Banking executives and crypto industry leaders are meeting at the White House on Monday for emergency negotiations over the CLARITY Act, legislation that could unlock a $500 billion market or trigger the next financial crisis. The fight centers on whether stablecoin holders should earn interest, with banks warning of a massive deposit exodus to crypto platforms if current loopholes remain open, while crypto firms argue these rewards are essential for competing with traditional finance.

Why it matters

This summit reflects the Trump administration's broader push to establish America as the 'crypto capital of the world' amid global competition. The outcome will determine whether crypto investments gain regulatory legitimacy or remain trapped in perpetual legal limbo, with major implications for the future of digital finance in the U.S.

The details

The GENIUS Act, enacted last July, prohibited stablecoin issuers from paying interest directly, but left a backdoor allowing third-party platforms to offer yields. The CLARITY Act, which passed the House in July, aimed to close this loophole, but hit a wall in the Senate Banking Committee. Now, the White House is bringing both sides together for emergency negotiations, with the crypto industry represented by the Blockchain Association and the banking sector by groups like the Digital Chamber.

  • The CLARITY Act passed the House in July 2026.
  • The CLARITY Act hit a wall in the Senate Banking Committee in the summer of 2026.
  • The White House crypto summit is scheduled for Monday, January 29, 2026.

The players

Blockchain Association

An industry group representing crypto firms like Coinbase, Ripple, and Kraken.

Digital Chamber

A banking industry group.

Summer Mersinger

Representative from the Blockchain Association, who expressed pride in attending and pushing for 'lasting market structure legislation.'

Cody Carbone

CEO of the Digital Chamber, who praised the White House for 'pulling all sides to the negotiating table.'

Trump Administration

The current U.S. presidential administration, which has pushed to establish America as the 'crypto capital of the world.'

Got photos? Submit your photos here. ›

What they’re saying

“We must pull all sides to the negotiating table.”

— Cody Carbone, CEO, Digital Chamber (gadgetreview.com)

“We are proud to attend and push for lasting market structure legislation.”

— Summer Mersinger, Representative, Blockchain Association (gadgetreview.com)

What’s next

The outcome of the White House crypto summit will determine whether the CLARITY Act moves forward in the Senate, unlocking a $500 billion market for stablecoin interest payments or maintaining the current regulatory uncertainty.

The takeaway

This high-stakes negotiation between banks and crypto firms could cement America's leadership in digital assets or expose the fundamental incompatibility between traditional finance and the crypto industry, with major implications for the future of digital finance in the U.S.