The White House has reportedly narrowed discussions between crypto and banking lobbyists to the issue of how stablecoin rewards should be structured, marking the third meeting between the two sides over a stalled crypto market structure bill.
Industry representatives from both sectors met at the White House on Thursday — their third gathering in just over two weeks — as the Senate weighs moving forward with the legislation. Talks have centered on stablecoin provisions that have become a sticking point in negotiations.
While no final agreement was reached, executives from Coinbase and Ripple said progress was made. One White House crypto adviser reportedly proposed a compromise that would allow third parties, such as exchanges, to offer rewards tied only to transaction activity, rather than to stablecoin balances.
“We rolled up our sleeves and went through specific language today,” Ripple chief legal officer Stuart Alderoty wrote on X. Coinbase’s chief legal officer Paul Grewal described the meeting as “constructive” and said the tone was cooperative.
Summer Mersinger, CEO of the Blockchain Association, called the talks a “step forward” toward resolving disagreements over stablecoin rewards and advancing broader crypto market structure legislation.
The latest session marked the third meeting between the White House, crypto firms and banking groups. The parties first convened on Feb. 2 and again on Feb. 10, as the Senate works to advance legislation that would clarify how US market regulators oversee the crypto sector.
The House previously passed its own version of the framework, the CLARITY Act, in July. However, momentum has stalled in the Senate Banking Committee, which has yet to secure enough bipartisan backing to move the bill forward.
According to Semafor reporter Eleanor Mueller and journalist Eleanor Terrett, White House crypto adviser Patrick Witt led much of the discussion at the most recent meeting.
Witt reportedly pushed a compromise proposal that would allow third parties to provide stablecoin rewards tied to user transactions or other activity, rather than to idle balances — a key sticking point for banks.
Terrett cited meeting participants as saying that earning yield on unused balances, a major priority for the crypto industry, is effectively “off the table,” with the debate now focused on whether firms can offer activity-based incentives instead.
Mueller reported that banking representatives plan to meet again to determine whether they can accept the proposed trade-off, with further talks expected in the coming days.
The banking sector was represented by the Bank Policy Institute, the American Bankers Association and the Independent Community Bankers of America. None of the groups has publicly commented on the latest White House discussions.
Banks cite competition concerns
Banking organizations have argued that allowing stablecoin rewards could undermine traditional financial institutions by drawing deposits away from banks. In April, the United States Department of the Treasury estimated that widespread stablecoin adoption could result in as much as $6.6 trillion in deposit outflows from the banking system.
However, Terrett reported that one banking representative at the meeting suggested their primary concern is competitive pressure from crypto firms, rather than the immediate risk of large-scale deposit flight.
