White House, Banks and Crypto Groups Resume Talks on Stablecoin Rewards
U.S. officials, banks, and crypto industry groups met at the White House to address how stablecoin rewards should be treated under proposed digital-asset legislation. The main issue is whether providing incentives or yields on stablecoins would cause them to be regulated like interest-bearing bank deposits. Banks are concerned that these rewards could blur the distinction between payment tokens and traditional bank products, while crypto firms argue that banning such incentives would harm the competitiveness of U.S. stablecoins and drive innovation abroad. The Crypto Council for Innovation described the talks as productive and indicated ongoing engagement, but no consensus was reached. It remains uncertain if the dispute will be resolved in time for lawmakers to pass the CLARITY Act during the current legislative session.
