White House Signals Compromise on Stablecoin Rewards in Crypto Bill

The post White House Signals Compromise on Stablecoin Rewards in Crypto Bill appeared first on Coinpedia Fintech News

The White House signaled a potential breakthrough in the ongoing debate over stablecoin rewards during its latest closed-door meeting with banking and crypto industry representatives. The session, held on Thursday, marked the third round of negotiations tied to the Senate Digital Asset Market Clarity Act, a sweeping bill designed to establish clearer rules for U.S. crypto markets. 

What Happened Inside the Room?

According to people familiar with the discussions, White House negotiators made it clear that some form of stablecoin rewards will remain in the next draft bill. The administration’s position represents a shift from earlier uncertainty and puts pressure on banks to accept a compromise. 

Banking representatives had previously pushed hard for a full ban on stablecoin rewards, arguing that such incentives could pull deposits away from traditional banks and weaken their core lending model. At this meeting, however, bankers were said to actively work on revised language that would allow limited rewards tied to specific transactions or activities, while preventing programs that resemble interest payments simply for holding stablecoins. 

Moreover, the White House team, led by President Donald Trump’s crypto adviser Patrick Witt, encouraged both sides to move quickly so the broader legislation can advance. 

The Agenda Behind the Talks

However, the main objective was to resolve the standoff over stablecoin yield provisions, one of the biggest sticking points in the Clarity Act. While the bill primarily focuses on defining regulatory authority across crypto markets, the stablecoin section has become central to the debate. Notably, the discussions also touch on how the new framework would reshape the existing stablecoin law passed last year, known as the GENIUS Act. The compromise now being considered would place tighter boundaries on rewards programs than current law allows, though it would stop short of a complete prohibition.

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What Action Was Taken 

Though no final deal was signed, participants described the meeting as constructive. The White House is expected to circulate updated draft language reflecting the compromise proposal. Banks will need to review and weigh in before any agreement is finalized.

If banking groups sign off, the revised language would likely be included in the next version of the market structure bill, potentially strengthening its chances in the Senate. 

What Comes Next

Despite progress, other issues remain unresolved. Some Democratic lawmakers continue to push for stronger protections in decentralized finance and additional oversight measures. Broader political disagreements could still complicate final passage. 

For stablecoin issuers, the White House’s backing of limited rewards appears to be cautiously positive news. Whether that optimism holds will depend on how far banks are willing to go in accepting the compromise.

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