The White House is preparing to convene a high-level meeting with senior executives from the crypto and banking sectors next week, as lawmakers struggle to push a long-awaited crypto market structure bill through the U.S. Senate. The meeting, first reported by Reuters, underscores growing urgency in Washington as negotiations remain stuck over one of the most divisive issues in digital asset regulation.
Stablecoin Rewards Become the Flashpoint
According to people familiar with the discussions, the summit will be hosted by the White House Crypto Council and will focus heavily on the treatment of stablecoin rewards, a provision that has become a major stumbling block in the US Senate Banking Committee. While the White House declined to comment publicly, officials see the issue as central to unlocking bipartisan support.
Tensions have intensified since the passage of the GENIUS Act last summer. Although the law prohibits stablecoin issuers from paying direct interest, it allows third-party platforms such as Coinbase to offer rewards to users holding stablecoins. Banks argue this loophole threatens traditional deposits, while crypto firms say the framework was already negotiated and approved.
Banks and Crypto at Odds
Banking trade groups have warned that unrestricted stablecoin rewards could drain deposits, particularly from community banks already under pressure from higher funding costs. From their perspective, crypto platforms offering yield-like incentives create a shadow banking system without equivalent regulatory burdens.
On the other side, crypto advocates accuse banks of trying to stifle competition under the guise of financial stability. Industry representatives argue that stablecoin rewards offered by exchanges are fundamentally different from interest paid by issuers, and that rolling them back would undermine innovation just as the U.S. tries to assert leadership in digital finance.
Industry Groups Step In
The Blockchain Association confirmed it will participate in the White House meeting. Its CEO, Summer Mersinger, framed the talks as a pivotal moment for U.S. policy.
Senate Process Still Stalled
Washington renewed its push to regulate crypto comprehensively last year, when the House passed the CLARITY Act with bipartisan backing. However, the Senate process has proven far more fragile. Both the US Senate Agriculture Committee and the Senate Banking Committee must advance their own versions before a unified bill can reach the Senate floor.
That process hit turbulence when the Banking Committee abruptly canceled its hearing, after Coinbase withdrew support, citing concerns over tokenized equities, DeFi restrictions, and stablecoin rewards. While the Agriculture Committee is now scheduled to hold its hearing, the latest draft text lacks Democratic backing, raising doubts about whether it can secure the 60 votes needed to pass the Senate.
White House Pushes for Momentum
The White House has made clear it wants fast progress. Patrick Witt, executive director of the President’s Council of Advisors for Digital Assets, recently warned that the window for action could close if momentum fades under the current crypto-friendly administration.
A High-Stakes Mediation
By convening both sides directly, the White House appears to be positioning itself as a mediator in a debate that Congress has struggled to resolve alone. The outcome of the meeting could shape not just the fate of stablecoin rewards, but the broader trajectory of U.S. crypto regulation.
For now, the message from Washington is clear: gridlock is no longer acceptable. Whether banks and crypto firms can bridge their differences may determine if the United States finally delivers long-promised clear rules of the road - or continues to lag as other jurisdictions move ahead.
