White House-hosted talks between bankers and crypto policy experts have advanced discussions on digital asset legislation, though a compromise on stablecoin yield has not yet been reached. The meetings, including a recent session involving Coinbase Chief Legal Officer Paul Grewal, aim to resolve an impasse blocking market structure bills.
The core disagreement centers on whether crypto firms should be allowed to offer yield on stablecoins, a practice bankers argue threatens their deposit business. This issue was a key point of contention in the previous GENIUS Act and remains a sticking point for the Digital Asset Market Clarity Act.
Sources indicate that Thursday's meeting, which extended beyond its scheduled time, saw White House officials pushing for common ground. The debate over stablecoin yield is one of the most significant hurdles to passing legislation that would govern U.S. crypto markets.
Beyond the stablecoin yield debate, Democratic negotiators have raised concerns regarding senior government officials' business interests in crypto, the appointment of key regulators, and stricter controls on illicit finance risks, particularly in decentralized finance (DeFi). These demands have yet to be fully met by Republican and White House proposals.
If an agreement on these points is reached, the legislation would still require Senate committee hearings and broad bipartisan support to pass. The crypto industry views the Clarity Act as a top priority, anticipating a surge in activity and investment once U.S. regulations are finalized.