The White House signaled a potential breakthrough in the ongoing debate over stablecoin rewards during its latest closed-door meeting with banking and crypto industry representatives. The session, held on Thursday, marked the third round of negotiations tied to the Senate Digital Asset Market Clarity Act, a sweeping bill designed to establish clearer rules for U.S. crypto markets.
What Happened Inside the Room?
According to people familiar with the discussions, White House negotiators made it clear that some form of stablecoin rewards will remain in the next draft bill. The administration’s position represents a shift from earlier uncertainty and puts pressure on banks to accept a compromise.
Banking representatives had previously pushed hard for a full ban on stablecoin rewards, arguing that such incentives could pull deposits away from traditional banks and weaken their core lending model. At this meeting, however, bankers were said to actively work on revised language that would allow limited rewards tied to specific transactions or activities, while preventing programs that resemble interest payments simply for holding stablecoins.
Moreover, the White House team, led by President Donald Trump’s crypto adviser Patrick Witt, encouraged both sides to move quickly so the broader legislation can advance.
The Agenda Behind the Talks
However, the main objective was to resolve the standoff over stablecoin yield provisions, one of the biggest sticking points in the Clarity Act. While the bill primarily focuses on defining regulatory authority across crypto markets, the stablecoin section has become central to the debate. Notably, the discussions also touch on how the new framework would reshape the existing stablecoin law passed last year, known as the GENIUS Act. The compromise now being considered would place tighter boundaries on rewards programs than current law allows, though it would stop short of a complete prohibition.
What Action Was Taken
Though no final deal was signed, participants described the meeting as constructive. The White House is expected to circulate updated draft language reflecting the compromise proposal. Banks will need to review and weigh in before any agreement is finalized.
If banking groups sign off, the revised language would likely be included in the next version of the market structure bill, potentially strengthening its chances in the Senate.
What Comes Next
Despite progress, other issues remain unresolved. Some Democratic lawmakers continue to push for stronger protections in decentralized finance and additional oversight measures. Broader political disagreements could still complicate final passage.
For stablecoin issuers, the White House’s backing of limited rewards appears to be cautiously positive news. Whether that optimism holds will depend on how far banks are willing to go in accepting the compromise.
Never Miss a Beat in the Crypto World!
Stay ahead with breaking news, expert analysis, and real-time updates on the latest trends in Bitcoin, altcoins, DeFi, NFTs, and more.
FAQs
Stablecoin rewards give users incentives for holding or using stablecoins. Banks worry they could pull deposits away and disrupt traditional lending.
By allowing controlled stablecoin incentives, the measure may encourage more user engagement and transactional activity. It could also signal growing regulatory clarity, which often boosts institutional participation.
The White House will circulate updated draft language, after which banks and lawmakers will review and negotiate. Final adoption will depend on Senate approval and any additional input from Democratic and Republican members.
Trust with CoinPedia:
CoinPedia has been delivering accurate and timely cryptocurrency and blockchain updates since 2017. All content is created by our expert panel of analysts and journalists, following strict Editorial Guidelines based on E-E-A-T (Experience, Expertise, Authoritativeness, Trustworthiness). Every article is fact-checked against reputable sources to ensure accuracy, transparency, and reliability. Our review policy guarantees unbiased evaluations when recommending exchanges, platforms, or tools. We strive to provide timely updates about everything crypto & blockchain, right from startups to industry majors.
Investment Disclaimer:
All opinions and insights shared represent the author’s own views on current market conditions. Please do your own research before making investment decisions. Neither the writer nor the publication assumes responsibility for your financial choices.
Sponsored and Advertisements:
Sponsored content and affiliate links may appear on our site. Advertisements are marked clearly, and our editorial content remains entirely independent from our ad partners.
