White House, Banks and Crypto Groups Resume Talks on Stablecoin Rewards

In brief

• U.S. officials met Thursday with banks and crypto industry groups to discuss how stablecoin rewards could be treated under pending market-structure legislation.
• The talks focused on whether incentives can be structured without classifying stablecoin issuers as deposit-taking institutions.
• Stablecoin rewards have emerged as a central obstacle to moving forward with the CLARITY Act.

U.S. officials, banking representatives, and crypto industry groups met again at the White House on Thursday to discuss the treatment of stablecoin rewards under proposed digital-asset market-structure legislation, as negotiations continue over an issue that has become a major sticking point for advancing the bill. The meeting brought together administration officials, lenders, and members of the Crypto Council for Innovation, which represents major digital-asset firms.  The Block and CoinDesk were first to report on the new developments. 

Discussions built on earlier sessions aimed at determining whether stablecoin incentives, often referred to as rewards or yield, can be offered without triggering regulatory treatment akin to interest-bearing bank deposits. Stablecoin rewards have emerged as one of the most contested elements of the broader market-structure debate, with banks warning that incentive-bearing tokens could blur the line between payment instruments and traditional deposits. Crypto firms, by contrast, argue that prohibiting rewards would reduce the competitiveness and utility of dollar-pegged tokens and risk pushing innovation offshore. In a statement following the meeting, CCI Chief Executive Ji Hun Kim said the discussions reflected “focused working engagement.” He added that further talks are expected.

“The conversation built upon previous meetings to establish a framework that serves American consumers while reinforcing U.S. competitiveness,” Kim said. “CCI and our members remain committed to the constructive engagement necessary to advance legislation that ensures the United States leads in responsible digital asset innovation,” Kim added. No agreement was announced following Thursday’s session, and it remains unclear whether lawmakers will be able to resolve the issue in time to move the CLARITY Act forward during the current legislative session. The White House did not immediately return Decrypt’s request for comment.