White House mediates bank and crypto clash over stablecoin rewards as Senate delays the Clarity Act and broader US crypto rules up.
The White House is moving to address rising tensions between crypto firms and banks over stablecoin rewards.
The dispute has slowed progress on federal crypto legislation, while both sectors push for clearer and balanced rules.
White House moves to manage crypto and bank tensions
The White House plans to host a meeting with senior executives from banks and crypto companies. The goal is to find common ground on legislation that has stalled in the Senate.
The talks will be led by the White House crypto council, according to industry sources familiar with the plans.
The meeting will include leaders from major trade groups representing both industries.
Officials want to address disagreements that have prevented lawmakers from advancing the bill. The administration sees the legislation as a priority and wants progress before further delays.
President Donald Trump’s administration has shown strong interest in crypto policy. During the campaign, Trump promised to support digital asset adoption.
The White House believes direct talks may help reduce resistance from both sides.
Stablecoin rewards drive the policy dispute
The main dispute involves whether crypto firms should be allowed to offer rewards on stablecoins.
Stablecoins are digital tokens pegged to the US dollar. They are widely used for trading, payments, and transfers.
Crypto firms argue that rewards are needed to attract and retain customers. They say limits would place them at a disadvantage compared to banks and other financial firms.
Industry groups also say consumers benefit from more options. Banks take a different view and warn of deposit losses.
They say rewards could move funds away from insured banks and into crypto platforms. Banks rely on deposits to fund loans, and large outflows could create risks.
Senate action delayed as concerns grow
The Senate has worked for months on the Clarity Act. The bill aims to set federal rules for digital assets and market structure. Crypto firms have pushed for the bill to gain legal certainty.
The House of Representatives passed its version of the bill in July. The Senate Banking Committee planned a vote earlier this month but postponed it. Lawmakers cited unresolved issues around stablecoin rewards.
Some Republicans also raised concerns about the bill’s stablecoin rules. Senate leaders worried the bill would not receive enough votes to move forward. These concerns added to the delay.
Related Reading: Crypto CLARITY Act Gains Momentum Despite Democratic Rift on Presidential Ban
Industry groups seek compromise through talks
Crypto trade groups confirmed participation in the White House meeting. Blockchain Association CEO Summer Mersinger said the group supports bipartisan work on market structure rules.
She said the goal is to keep the US competitive in crypto markets.
Cody Carbone, CEO of The Digital Chamber, said the White House helped bring both sides together.
He said talks are needed to move past the standoff. Banks continue to push for strict limits on rewards.
A Standard Chartered report estimated stablecoins could move $500 billion from US banks by 2028. That figure has added urgency to the debate.
The White House hopes the meeting will narrow gaps and restart legislative progress.
Source: https://www.livebitcoinnews.com/crypto-banks-and-the-white-house-clash-over-stablecoin-rewards/
