White House to Meet Crypto and Prediction Market Executives on August 19, Reports Politico. However, there is no disclosure of the agenda and names of attendees. Further, it is unclear whether President Trump will attend the meeting. This meeting is taking place at a time when Congress is facing difficulties in moving forward with the Digital Asset Market CLARITY Act. On one hand, the House had approved it by a vote of 294-134 in July 2025. In May 2026, the Senate Banking Committee had approved it 15-9. But Senate leaders have decided to defer any decision until September 14.
Ethics Controversies and Stablecoins Keep Lawmakers On Hold
The Senate negotiations will be centered on government ethics, reward systems in stablecoins, decentralization, and financial crime prevention. Ethics will include the possible imposition of regulations on crypto asset holdings as well as income generation from such assets related to government employees. The package for ethics has been created by two senators, Tillis and Gallego, and is bipartisan, but it has not been accepted yet by the White House before recess.
Rewards for stablecoin use are another key issue that has caused a clash between banks and crypto firms. Banks fear that rewards might motivate clients to withdraw funds from banks. Crypto firms want to preserve some sort of incentives for the usage of stablecoins through platforms. In July, large banks requested the revision of Section 404, which allowed the possibility of creating a reward system similar to bank interest, even though the draft forbids interest on idle payment stablecoins.
Stablecoin and Ethics Disputes Keep Lawmakers Divided
Senate negotiations remain focused on government ethics, stablecoin rewards, decentralized finance, and anti-money laundering rules. Ethics discussions center on proposed limits for crypto holdings and income involving senior officials. Senators Thom Tillis and Ruben Gallego have developed a bipartisan ethics package, but the White House has not approved it.
Stablecoin rewards remain contentious between banks and crypto firms. Banks warn incentives could shift deposits away from traditional institutions, while crypto firms want transaction-based rewards. In July, major banking groups urged Senate leaders to revise Section 404, arguing its language could allow rewards resembling bank interest.
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