The White House is set to convene senior executives from the banking and cryptocurrency sectors this week as it seeks to revive stalled digital asset legislation amid a growing dispute over stablecoin-related interest payments.
Organized by the White House’s crypto policy council, will center on how the proposed Clarity Act treats rewards and yield offered on dollar-pegged stablecoins, Reuters reported.
The issue has emerged as the primary fault line between the two industries and has slowed progress on what would be the most comprehensive federal crypto framework to date.
Stablecoin Interest Emerges As Central Point of Conflict
At the heart of the impasse is whether firms connected to stablecoins should be allowed to provide interest or similar incentives on customer balances.
Crypto companies argue that such rewards are critical to user adoption and competitiveness, particularly as stablecoins are increasingly positioned as payment and savings tools rather than solely trading instruments.
Banks, however, warn that allowing yield-bearing stablecoins could draw deposits away from insured lenders, threatening a key source of funding for the traditional financial system.
Industry groups representing banks have raised concerns that even indirect interest payments, offered by exchanges or other intermediaries rather than issuers themselves, could accelerate deposit outflows.
Legislative Momentum Slows In The Senate
The Clarity Act has been under consideration in the Senate for months following its passage in the House of Representatives last July.
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The legislation is designed to establish clear federal rules for digital assets, addressing long-standing complaints from crypto firms that the current regulatory environment is fragmented and unpredictable.
Earlier this month, the Senate Banking Committee abruptly postponed a planned debate and vote on the bill.
Lawmakers cited unresolved concerns around stablecoins and interest payments as a contributing factor, highlighting the depth of disagreement between banking and crypto stakeholders.
The dispute stems in part from a stablecoin law passed last year that prohibited issuers from paying interest on dollar-pegged tokens, while leaving ambiguity around whether third parties such as trading platforms, could distribute yield. Banks argue that this gap creates uneven competition, while crypto firms view it as necessary flexibility for innovation.
White House Signals Push For Compromise
By hosting the meeting, the Trump administration is signaling its intent to play a more active role in brokering a compromise between the two industries.
The White House did not comment publicly on the discussions, and participants declined to be named given the sensitivity of ongoing policy negotiations.
As stablecoins move closer to broader use in payments and financial services, the outcome of these talks is likely to shape not only the fate of the Clarity Act, but also the future role of dollar-pegged digital tokens in the U.S. financial system.