White House Weighs Limited Stablecoin Rewards in Ongoing Crypto Bill Talks

The White House has reportedly narrowed discussions between crypto firms and banking lobby groups around how stablecoin rewards should function under pending U.S. market structure legislation. The latest meeting, held this week, marks the third round of talks in just over two weeks as lawmakers push to advance a comprehensive crypto framework.

White House crypto adviser Patrick Witt steered negotiations toward a compromise that would allow third parties, including exchanges, to offer stablecoin rewards tied strictly to transaction activity rather than interest on idle balances.

Executives from Coinbase and Ripple described the discussions as constructive, though no final agreement was reached.

Ripple’s chief legal officer, Stuart Alderoty, posted to X on Thursday;

Banks Cite Competitive Concerns Over Yield on Stablecoins

Banking trade groups, including the American Bankers Association, have argued that allowing yield-bearing stablecoin balances could pressure traditional deposits and reshape liquidity flows. A previous estimate from the U.S. Treasury suggested widespread stablecoin adoption could lead to trillions in deposit outflows.

The debate unfolds alongside legislative efforts such as the CLARITY Act, which aims to define regulatory oversight for digital assets. While progress has been incremental, discussions are expected to continue as lawmakers seek bipartisan support.

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