The recent turbulence in the crypto market has not subsided, and regulatory authorities have announced another major development: the White House will hold a second specialized meeting on Tuesday with representatives from crypto institutions and banks. The core focus will be on regulating stablecoin yields, attempting to balance financial innovation with systemic security. In the initial consultation, banks clearly opposed paying yields on stablecoins, highlighting a significant divergence between the parties. This second meeting is likely to push U.S. stablecoin regulation from "setting the tone" to "refinement," profoundly impacting the global crypto market direction.

Stablecoins are traditionally a "safe haven" in the crypto market, pegged to fiat currencies with minimal volatility, primarily used for payments and settlements. However, amid recent speculative fervor, they have increasingly deviated from their original purpose, with frequent scandals involving high yields: some platforms falsely promote "stablecoin wealth management" with claims of 1% daily interest and annualized returns exceeding 370%, which are actually Ponzi schemes. Multiple platforms have collapsed, losing hundreds of billions of dollars, disrupting markets and challenging traditional financial systems. This is the core reason behind the White House's successive meetings.

The main focus of this meeting is the negotiation of multiple interests. The banking camp maintains a firm stance, opposing paying yields on payment stablecoins, fearing that high returns could lead to the outflow of core deposits—estimates suggest that if restrictions are loosened, community banks could lose $130 million in deposits, weakening their ability to support small and medium-sized enterprises and threatening financial stability. They also propose clarifying stablecoin yields as interest to close regulatory loopholes. Conversely, crypto institutions like Cb and Paxos seek to expand compliant yield opportunities, arguing that reasonable returns are not inherently dangerous. They advocate that, under the framework of the "Genius Act," ensuring 100% reserves and regulatory compliance, platforms should be allowed to offer low-risk, transparent yield products to avoid stifling innovation through excessive regulation.

Currently, the U.S. "Genius Act" has taken effect, but there are no specific regulations on stablecoin yield rates. Meanwhile, the EU and Hong Kong have already implemented relevant regulations. This White House meeting aims to improve the domestic framework and fill regulatory gaps to prevent arbitrage.

For the global crypto market, the outcomes of this meeting are crucial: in the short term, it can curb high-yield scams and purify the market; in the medium to long term, it can help stablecoins return to their core purpose, reduce systemic risks, and guide compliant institutions.

Platform investors should remember that the core value of stablecoins is preservation of value and payment, not a tool for quick wealth. Maintaining rationality is essential to avoid pitfalls.

This meeting marks the beginning of a more detailed phase of stablecoin regulation. The contest between crypto institutions and banks is fundamentally about balancing innovation and security. In the future, as regulations are implemented, the stablecoin market will move away from reckless growth. Only compliant innovation in the crypto industry can ensure sustainable long-term development.