White House Plans Talks to Resolve Stablecoin Dispute Stalling Senate Crypto Bill: Report

Washington is reportedly scrambling to break a high-stakes deadlock over crypto rules as banks and digital asset firms clash over stablecoin rewards, pushing the White House to broker talks that could shape U.S. market structure policy.

White House Steps in as Banks and Crypto Clash Over Stablecoin Rules

Regulatory negotiations over digital assets continue to intensify as competing industries press lawmakers for clarity. The White House plans to convene banking and cryptocurrency executives to address stalled legislation, according to a report by Reuters on Jan. 28. The planned talks signal renewed urgency around resolving policy divisions in Washington.

The report outlines a White House–hosted summit organized through its crypto council that will bring together trade groups and senior executives from both sectors to examine unresolved elements of the Senate’s Clarity Act. Central to the discussions is whether crypto platforms may distribute interest or other rewards on customer holdings of dollar-pegged stablecoins, an issue that contributed to the Senate Banking Committee postponing a scheduled debate earlier this month.

Blockchain Association CEO Summer Mersinger was quoted as saying:

“We look forward to continuing to work with policymakers across the aisle so Congress can advance lasting market structure legislation and ensure the United States remains the crypto capital of the world.”

Digital Chamber CEO Cody Carbone credited the administration with pulling stakeholders into direct negotiations, reflecting the White House’s mediating posture rather than alignment with either side.

Read more: Enactment of US Crypto Market Structure Bill Could Drive Major Bullish Shift

Additional details highlight why the dispute has proven difficult to resolve. Crypto firms argue that reward mechanisms are essential for user acquisition and fair competition, while banks caution that such incentives could accelerate deposit outflows from insured lenders, undermining a core funding base. A recent Standard Chartered analysis estimated that stablecoins could draw approximately $500 billion in U.S. bank deposits by the end of 2028, heightening concerns among financial institutions.

The contested language traces back to a stablecoin framework enacted last year that barred issuers from paying interest but left ambiguity around third-party platforms, creating friction among Republicans and uncertainty over whether the legislation can secure sufficient Senate support. President Donald Trump’s administration, which actively engaged the crypto sector during the campaign, continues to emphasize passage of comprehensive digital asset rules as a priority.

FAQ ⏰

• Why is the White House hosting talks on the Clarity Act?

The administration is attempting to resolve a standoff between banks and crypto firms that has stalled Senate debate on digital asset legislation.

• What is the dispute over stablecoin rewards?

Lawmakers are divided over whether crypto platforms can offer interest or rewards on dollar-pegged stablecoin holdings.

• Why are banks concerned about stablecoins?

Banks warn that stablecoins could pull hundreds of billions of dollars in deposits away from insured lenders.

• How much could stablecoins impact U.S. bank deposits?

A Standard Chartered analysis estimates stablecoins could draw about $500 billion in U.S. bank deposits by 2028.