U.S. officials have resumed talks with banks and crypto groups over stablecoin rewards, signaling renewed focus on whether yield-like programs should be regulated as deposits. Lawmakers are actively debating whether such rewards trigger deposit-like regulation, a dispute that could slow progress on the CLARITY Act. At a White House meeting on Thursday, administration officials met with banking leaders and crypto industry representatives to revisit one of the most contentious issues in digital-asset legislation: stablecoin rewards.
The discussions center on how to regulate yield or incentive programs tied to dollar-pegged tokens under the CLARITY Act and whether stablecoin issuers can offer rewards without facing classification as deposit-taking institutions. Proponents argue that stablecoin incentives help drive adoption and strengthen the competitiveness of U.S.-based digital-dollar products, while banks warn that adding yield to stablecoins could blur the line between payment tokens and traditional deposits and threaten financial stability.
Lawmakers face a crossroads: regulate reward-bearing stablecoins as bank deposits with stricter rules, or allow rewards without deposits status, which could constitute regulatory arbitrage. The CLARITY Act aims to clarify how federal regulators oversee digital assets, but the debate over rewards has brought progress to a standstill.
Officials say a balanced approach is needed to foster innovation while safeguarding financial stability. CCI Chief Executive Ji Hun Kim described Thursday’s session as constructive, noting that all parties will continue working on a framework to protect consumers and maintain U.S. competitiveness, with future sessions planned. Still, no final agreement emerged from the meeting, and lawmakers must address rewards before moving the bill.
Stablecoins remain central to the crypto market because they enable trading, settlement, and international payments, and policymakers want a clear regulatory framework for dollar-denominated stablecoins. Industry voices warn that a ban on rewards could hinder innovation and push stablecoin activity offshore, while banks push for standards that prevent stablecoin issuers from delivering bank-like services without adequate regulation. The White House has yet to state an outcome, but the resumed negotiations underscore the urgency of solving this issue. The next weeks will reveal whether Congress can reconcile the competing interests and advance digital asset reform, and Bybit has launched USDC and EURC stablecoin earn campaigns across Europe.
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