White House officials met on Monday with leaders from the crypto industry and major banking trade groups in an effort to ease a key regulatory dispute that has slowed progress on the long‐anticipated crypto market structure legislation, known as the CLARITY Act.
The meeting focused on one of the most contentious issues holding up the bill: whether stablecoin issuers and related third parties should be allowed to offer yield or rewards on stablecoin holdings.
Stablecoin Rewards Debate
The discussion comes against the backdrop of intense lobbying from the banking sector. Banks have been pushing lawmakers to insert language into the CLARITY Act that would prohibit not only issuers, but also third parties, from providing rewards tied to stablecoins.
The cryptocurrency industry, however, argues that such restrictions would tilt the playing field in favor of traditional financial institutions, which they say are increasingly concerned about competition from digital asset firms.
Additional details about the meeting were shared by Eleanor Terrett of Crypto In America, who cited sources familiar with the discussion. According to Terrett, the session lasted two hours and was described as constructive, with a balanced exchange around both the risks and potential benefits of stablecoin yield.
The meeting brought together a broad range of stakeholders. Representatives from major banking organizations, including the American Bankers Association, Bank Policy Institute, Financial Services Forum, Consumer Bankers Association, and the Independent Community Bankers of America.
Attendees also included Fidelity, PayPal, Paradigm, SoFi, Coinbase, Paxos, Crypto.com, Kraken, Ripple, and Tether, as well as advocacy groups like the Blockchain Association, Digital Chamber, and Crypto Council. Additional participants included Stripe, Galaxy Digital, Multicoin, Circle, and Cantor.
Crypto And Banking Leaders Signal Progress
Following the meeting, Cody Carbone, who heads the Digital Chamber and leads its crypto policy efforts, described the talks as a meaningful step forward.
Carbone said the meeting represented “exactly the kind of progress needed to find a resolution to one of the biggest issues blocking next steps in market structure legislative progress.”
The White House’s Crypto Council Executive Director, Patrick Witt, echoed that sentiment, thanking participants from both the crypto and banking industries for engaging in what he described as a fact‐based and solutions‐oriented conversation.
Witt noted that policymakers and industry leaders have made progress in recent months on several policy challenges once thought to be unsolvable, and expressed confidence that the stablecoin rewards issue could also be resolved through continued dialogue.
The banking groups involved in the meeting also released a joint statement reinforcing their position. They stressed that any final legislation should continue to support local lending to families and small businesses, safeguard the stability of the financial system, and promote sustainable economic growth.
Despite the apparent progress, the legislative path forward remains uncertain. It is still unclear whether the Senate Banking Committee will follow the lead of the Senate Agriculture Committee, which cleared a significant procedural hurdle last Thursday by approving its portion of the CLARITY Act during a scheduled markup.
Featured image from OpenArt, chart from TradingView.com
