Fresh Negotiations Emerge as White House and Banks Debate Stablecoin Rewards

US officials, representatives from the banking sector, and cryptocurrency groups met again at the White House on Thursday to discuss how stablecoin rewards should be addressed within proposed legislation aimed at structuring the digital asset market. This meeting comes amid ongoing negotiations over the issue, which has become a major obstacle to the bill’s passage.

The session included members of the US administration, along with lenders and representatives from the Digital Currency Innovation Council, which represents major digital asset companies. Building on previous discussions, participants once again explored the possibility of allowing incentives for stablecoins, often referred to as rewards or returns, without subjecting them to the same regulatory framework as interest-bearing bank deposits. As a result, the talks focused heavily on balancing innovation with financial stability concerns.

Regulatory Dispute Between Banks and Digital Asset Companies

Stablecoin rewards have emerged as one of the most contentious elements in the broader digital asset market structure debate. On one hand, banks have warned that offering incentives on digital assets could blur the line between payment instruments and traditional bank deposits, potentially creating regulatory and financial stability risks.

On the other hand, cryptocurrency companies argue that prohibiting such rewards would undermine the competitiveness of dollar-backed digital assets. Furthermore, they contend that banning incentives could reduce the appeal of stablecoins and drive digital asset innovation outside the United States. Consequently, industry leaders warn that such restrictions may weaken the country’s leadership position in this rapidly expanding sector.

Official Statements Signal Ongoing Cooperation and Legislative Efforts

Following the meeting, the CEO of the Chamber of Commerce and Industry, Je-Hoon Kim, stated that the discussions reflected “serious and productive cooperation”, adding that additional meetings are expected in the near future.

Moreover, Kim emphasized that these talks build upon earlier efforts to establish a regulatory framework that serves American consumers while strengthening US competitiveness. He also reaffirmed the Chamber of Commerce and Industry’s commitment, along with its members, to advancing legislation constructively to ensure that the United States remains a global leader in responsible digital asset innovation.

Uncertainty Remains Over the Clarity Act’s Passage

Despite the importance of Thursday’s meeting, no agreement was announced afterward. Therefore, it remains uncertain whether lawmakers will be able to resolve the issue in time to advance the Clarity Act during the current legislative session.

Meanwhile, the White House did not immediately respond to Decrypt’s request for comment. This lack of official clarification has left room for continued speculation regarding the final direction of the legislation and its potential impact on the digital asset market.