The White House is set to convene senior figures from the banking and cryptocurrency sectors next week as Washington seeks to break a legislative impasse over digital asset regulation. According to reports, the meeting will be hosted by the administration’s crypto council and will focus on the treatment of stablecoin rewards, an issue that has become one of the most contentious points in Senate negotiations. Lawmakers have struggled to advance a broader crypto framework, and tensions between banks and crypto firms have intensified as stablecoins gain traction as payment and settlement tools. The administration’s decision to bring both sides together signals growing urgency to resolve disagreements that could stall progress on market structure legislation and weaken momentum under the current crypto friendly policy environment.
At the center of the dispute is how stablecoin related rewards should be handled under existing and proposed laws. Banking trade groups have raised concerns that loopholes allowing third party platforms to offer rewards on stablecoins could draw deposits away from traditional banks, particularly smaller community lenders that rely heavily on deposits. Although recent legislation restricts issuers from paying interest, banks argue that indirect incentives still pose a competitive threat. Crypto advocates counter that banks are attempting to limit competition and slow innovation rather than adapt to changing consumer preferences. Industry groups representing digital asset firms are expected to push for clearer, technology neutral rules that balance consumer protection with market access during the discussions.
The meeting comes as Congress faces mounting pressure to move forward with comprehensive crypto legislation. While the House has already passed a market structure bill with bipartisan backing, progress in the Senate has been uneven, with key committees divided over stablecoins and tokenized assets. A recent Senate Banking Committee hearing was delayed after industry support fractured, underscoring the fragility of negotiations. Administration officials have emphasized that the window for passing durable rules may be limited, warning that delays could erode political momentum. By stepping in directly, the White House appears to be positioning itself as a mediator, aiming to align banks, crypto firms, and lawmakers around a framework that can advance to a full Senate vote.
