Despite progress, lawmakers and banks remain at odds over stablecoin yields, risking delays to key crypto legislation. A third White House session aimed at unblocking the Digital Asset Market Clarity Act ended without a deal on stablecoin rewards, though attendees said the sides made progress. Banks are pushing to ban stablecoin yield, arguing it threatens the deposit business. The unresolved dispute is delaying movement on the Digital Asset Market Clarity Act in Congress.
Crypto policy leaders and banking representatives described the session as constructive. Ji Kim, CEO of the Crypto Council for Innovation, noted the meeting’s constructive tone and said the discussions built on prior talks to craft a framework serving American consumers while bolstering U.S. competitiveness. Coinbase’s Paul Grewal said the discussions were cooperative, writing on X that there was more progress.
Behind the talks, the impasse centers on whether stablecoins should be allowed to offer yield or rewards, a point that some argue could threaten their deposit business. An earlier compromise would have dropped rewards on static holdings while permitting them for certain activities and transactions, and banks have pushed for a full ban on rewards. Even if the yield policy is resolved, the bill still faces hurdles in Congress, including the need for a Senate Banking Committee hearing after the Agriculture Committee’s vote.
Democratic negotiators have pressed for reforms to senior officials’ crypto holdings and for White House vacancies at the SEC and CFTC. They have also called for tighter controls on illicit finance risks, especially in DeFi.
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