Representatives from crypto and banking groups returned to the White House on Thursday in another attempt to resolve the key dispute holding up the long‐awaited crypto market structure legislation known as the CLARITY Act.
Despite the Senate Banking Committee’s positive vote on its part of the legislation, the bill has already faced delays and is now stalled due to disagreements about whether stablecoin issuers and platforms should be allowed to offer yield or rewards to users.
Coinbase, Ripple Signal Progress
At the center of the debate is a push from some senators and banking industry representatives to include language in the legislation that would prohibit companies from paying customers rewards for holding stablecoins on their platforms.
Some crypto advocates remain hopeful that lawmakers may draw a distinction between yield for holding stablecoins and rewards for using them, similar to the incentive programs long offered by credit card companies. They argue that usage‐based rewards should be treated differently from interest payments.
Following Thursday’s meeting, Coinbase Chief Legal Officer Paul Grewal described the discussions as productive. “The dialogue was constructive and the tone cooperative. More to come,” Grewal wrote in a post on X.
Ripple’s Chief Legal Officer, Stuart Alderoty, echoed that sentiment, saying on social media that participants worked through specific legislative language and that discussions would continue in the coming days. “Let’s get this right and make the US the crypto capital of the world!” Alderoty wrote.
90% Chance Crypto Bill Passes By April
The renewed negotiations come shortly after Ripple CEO Brad Garlinghouse expressed growing confidence that the bill will advance. Garlinghouse said he now believes there is a 90% chance the legislation will pass by the end of April.
“I had said a couple weeks ago, I thought end of April — at the time, people thought that was a little optimistic,” he noted, referencing the meeting at the White House involving leaders from both the crypto and banking sectors.
The White House has set a March 1 deadline for resolving the dispute over stablecoin rewards, adding urgency to the talks. Treasury Secretary Scott Bessent reinforced that timeline last week, urging Congress to move forward with the legislation this spring.
Featured image from OpenArt, chart from TradingView.com
