On February 2, 2026, White House officials met with executives from crypto giants, including Coinbase and Ripple, to discuss stablecoin-related provisions in the crypto market structure bill H.R.3633 amid banking industry tensions.
The meeting sought to address banking industry’s concerns over stablecoin rewards, which could erode deposits, potentially shifting $500 billion by 2028, impacting regulatory dynamics and market competition.
The White House meeting involved crypto executives and banking leaders discussing stablecoin rewards regulation. The meeting focused on potential impacts of stablecoin rewards policies outlined in the crypto market structure bill (H.R.3633) passed by the House in July 2025.
The discussion revolved around stablecoin incentives under the GENIUS Act, possibly affecting banking sector dynamics significantly. Representatives from Coinbase, Ripple, and Kraken attended, advocating for policies enabling growth, while banking executives expressed concerns about deposit competition.
Industry Braces for $500 Billion Deposit Shift by 2028
Executives fear stablecoin rewards could shift deposits away from banks. The pending legislation may lead to regulatory changes, affecting market stability. Coinbase CEO’s withdrawal from bill support indicates growing tensions within the industry over these policies.
The bill’s implementation could transform both crypto and banking industries. Experts suggest that if stablecoins expand to a $2 trillion market size, deposit shifts could reach $500 billion by 2028. This has prompted significant debate within the financial community.
Senate Delays Bill Markup Amid Stakeholder Shifts
Past regulations like the GENIUS Act set precedents on stablecoin reward policies. Historical legislation efforts wrestle with balancing innovation with industry stability. The Senate Banking Committee recently postponed the bill’s markup due to evolving stakeholder positions.
Expert analysis indicates potential market volatility if regulatory consensus isn’t reached. CFTC Chairman has emphasized regulatory environments fostering innovation within U.S. borders, suggesting ongoing efforts to reconcile divergent industry interests could be pivotal.
“We look forward to continuing to work with policymakers across the aisle so Congress can advance lasting market structure legislation and ensure the United States remains the crypto capital of the world.” — Summer Mersinger, CEO, Blockchain Association.
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