White House Seeks Path for Stablecoin Rewards in Key Bill

White House stablecoin talks deadlock over key issue of reward-bearing tokens and bank rules

  • U.S. officials met with banks and crypto groups at the White House to discuss stablecoin rewards and pending legislation.
  • The central debate is whether incentives can be offered without classifying stablecoin issuers as deposit-taking banks.
  • This issue has become a major obstacle to advancing the CLARITY Act for digital-asset market structure.
  • No agreement was reached, and the timeline for resolving the dispute remains unclear.

U.S. administration officials, banking representatives, and members of the Crypto Council for Innovation convened at the White House on Thursday for another round of critical talks on stablecoin regulation. The Block and CoinDesk provided the initial reports on these developments.

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Discussions focused on a pivotal regulatory question: whether stablecoin rewards can be structured without triggering treatment akin to bank deposits. Consequently, this technical issue has emerged as a central obstacle to moving the broader market-structure bill forward.

Banks warn that incentive-bearing tokens dangerously blur the line with traditional deposit accounts. However, crypto firms argue that prohibiting rewards would stifle innovation and reduce the utility of dollar-pegged tokens.

In a statement, CCI Chief Executive Ji Hun Kim called the meeting a “focused working engagement.” He added that the conversation built upon previous meetings to establish a pro-consumer and pro-competitiveness framework.

Meanwhile, Kim emphasized his group’s commitment to “constructive engagement necessary to advance legislation.” No agreement was announced following the session, however, leaving the legislative path uncertain.

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The White House did not immediately return a request for comment. Consequently, it remains unclear if lawmakers can resolve this sticking point during the current legislative session.

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