A third White House meeting aimed at unblocking the Digital Asset Market Clarity Act ended without a deal on stablecoin rewards, though attendees said the sides made progress.
Meeting details
Crypto policy leaders and banking representatives met Thursday in what participants described as another constructive session.
Crypto Council for Innovation CEO Ji Kim said:
“Today’s constructive meeting at the White House reflects the importance of focused working engagement.”
Kim added:
“The conversation built upon previous meetings to establish a framework that serves American consumers while reinforcing U.S. competitiveness.”
Coinbase Chief Legal Officer Paul Grewal also described the discussions as cooperative, writing on X that the sides made “more progress.”
Why stablecoin yield is the sticking point
The impasse centers on whether stablecoins should be allowed to offer yield or rewards, a feature banks argue threatens their deposit business.
Banking groups want the market structure bill to revisit how the already-enacted Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act handled rewards.
An earlier compromise proposal would have dropped rewards on static holdings while allowing them for certain activities and transactions.
Banks have pushed for a full ban on rewards.
White House pressure to reach common ground
People briefed on the talks said the meeting ran well beyond its scheduled two hours.
They also said White House officials pressed participants to stay until common ground was found, including collecting phones.
Senate path and Democratic demands
Even if banks and crypto firms align on yield, the bill still faces hurdles in Congress.
The Senate Banking Committee would need to hold a hearing, following the Senate Agriculture Committee’s earlier partisan vote to advance its own version.
Democratic negotiators have sought restrictions on senior government officials holding significant crypto business interests, a concern aimed at President Donald Trump.
They have also called for the White House to fill vacancies at the Securities and Exchange Commission and the Commodity Futures Trading Commission, and for tighter controls on illicit finance risks, especially in DeFi.
