On Thursday, the White House hosted a closed-door meeting with banking representatives and crypto groups to discuss the treatment of stablecoin yields under the proposed digital assets market structure bill, commonly known as the CLARITY Act.
According to two people familiar with the third round of negotiations, White House officials favor limited stablecoin rewards, which, if bankers sign off, will be included in the next draft of the bill. However, discussions continue over the issue that has become a major sticking point for advancing the sweeping legislation designed to establish clearer rules for the U.S. crypto markets.
Banks and Crypto Near Deal on Stablecoin Yields in CLARITY Act
Yesterday’s discussion aimed to reach a consensus on whether stablecoin incentives, often referred to as yield, can be offered to users without triggering regulatory treatment akin to an interest-bearing bank deposit.
These rewards have emerged as one of the most contested portions of the broader market-structure debate, with banks warning that incentive-bearing tokens could blur the line between payment instruments and traditional deposits. However, the Trump White House has made it clear that certain rewards programs will remain in the next draft of the crypto market structure bill.
Crypto proponents argue that prohibiting the rewards would reduce the competitiveness and utility of dollar-pegged stablecoins and risk pushing innovation offshore. In a statement following the meeting, CCI chief executive Ji Hun Kim said the meeting was a focused working engagement. He added that further discussions are expected.
“The conversation built upon previous meetings to establish a framework that serves American consumers while reinforcing U.S. competitiveness,” said Kim. “CCI and our members remain committed to the constructive engagement necessary to advance legislation that ensures the United States leads in responsible digital asset innovation.”
White House Supports Yields Offered for Certain Stablecoin Activities, But Not Deposits
Section 404 of the CLARITY Act draft bill, which centers around stablecoins, has nothing directly to do with crypto market structure, and the revisions being discussed between the President’s Working Group on Digital Assets, bankers, and crypto representatives would actually overhaul the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act – a landmark federal legislation signed into law by President Trump in July 2025 for regulating stablecoins in the United States.
White House negotiators, led by Trump’s crypto advisor, Patrick Witt, came with a position that stablecoin yield must be allowed for certain activities and transactions, but not for stablecoin holdings that more closely resemble deposit accounts. Witt’s team urged a quick resolution to the matter, as it would allow the CLARITY Act to move forward.
Banks expressed fears about stablecoin rewards, as they would undermine the banking industry’s bread-and-butter business model that depends on customers making interest-bearing deposits into their accounts.
Participants at the meeting expressed hopes that a compromise could be reached between the bankers and crypto players very soon.
“Today’s meeting at the White House was a constructive step forward in resolving outstanding issues related to rewards and keeping market structure legislation on track,” said Blockchain Association CEO Summer Mersinger, who was at the White House, in a statement.
