Ripple (CLO) Chief Legal Officer Stuart Alderoty has signaled that a compromise could soon emerge amid ongoing discussions between banks, the US Senate and cryptocurrency leaders over stablecoin rewards. The comments came after a smaller White House meeting that focused on stablecoin regulationswhich highlights what activities should be allowed under the upcoming regulations. Depending on the outcome, this could have a direct impact on Ripple’s business and the broader prospects for XRP.
The compromise puts Ripple in the regulatory spotlight
Popular journalist Eleanor Terrett reported on Wednesday, February 11, that both banking and crypto industry participants described the White House Stablecoin profitability meeting as productive, even though no final agreement was reached. The meeting discussed transaction details in more detail than in previous sessions, with particular emphasis on how stablecoins will be rewarded, as highlighted in Transparency Actcould be structured in line with future regulations.
During the meeting, Alderoty stated that “a compromise is in the air,” signaling a potential move towards a common position between banks and cryptocurrency representatives. In the case of XRP, this matters because Ripple’s role in cross-border payments and services of its stablecoin RLUSD depend largely on how regulators define permissible reward- and transaction-based activities.
Notably, Terrett stated that banks and trade groups came to the White House meeting with a written set of prohibitory rules that outlined what they would not accept regarding stablecoin rewards. These rules were intended to protect classic banking structures while limiting the extent to which digital assets can compete with deposit products.
Under these rules, banks said payment stablecoins should not offer yields or rewards to prevent deposit flight and preserve lending in local communities. They also called for mighty enforcement measures to address regulatory loopholes, marketing restrictions that could portray stablecoins as insured or risk-free, and a regulatory review after two years to assess potential risks.
According to Terrett, one source said banks made a key concession by accepting language containing possible waivers that had previously been off the table. This change opens the possibility that transaction-based rewards will be allowed under strict conditions, which could impact the structure of Ripple’s stablecoin services, with potential impact on XRP also.
What negotiations could mean for XRP and Stablecoins
A major point of debate during the meeting was the definition of permissible activities, which would outline what crypto companies like Ripple can do when offering stablecoin rewards. Cryptocurrency officials have pushed for broader definitions to bring greater transparency to stablecoins, while banks argued for tighter boundaries to reduce risks to the financial system.
The White House has urged both sides to reach an agreement by March 1, 2026, with further discussions expected in the coming days. While it is unclear whether another meeting of this scale will take place this month, Ripple’s participation puts RLUSD and XRP directly in the spotlight. The outcome of these negotiations could shape how the crypto company and the broader stablecoin market offer rewards and possibly influence how they operate within future regulatory framework.
Featured image from YouTube, chart from Tradingview.com
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