The White House has advanced talks with crypto and banking lobbyists, focusing on a potential compromise for stablecoin rewards within proposed crypto market structure legislation. This marks the third meeting between industry representatives and White House officials aimed at resolving provisions that have stalled Senate passage of a crypto bill.
While no definitive agreement was reached, White House crypto adviser Patrick Witt reportedly urged a trade-off allowing third parties, such as exchanges, to offer stablecoin rewards tied to transaction activity, not account balances. This proposal aims to address banking industry concerns about competitive pressures.
Executives from Coinbase and Ripple described the meeting as constructive and a step forward. Representatives from the banking sector, including the Bank Policy Institute and the American Bankers Association, are reportedly deliberating on the proposed compromise. Their primary concern appears to be competitive pressures from stablecoins, rather than significant deposit flight risk, according to reports.
This initiative follows the House's passage of a similar bill, the CLARITY Act, with ongoing efforts to secure bipartisan support in the Senate.
