- White House-hosted crypto talks made progress, but no final compromise emerged
- Stablecoin yield remains the main sticking point between banks and crypto firms
- Congressional hurdles and Democratic demands could still delay passage of the Clarity Act
Another round of crypto policy talks took place at the White House on Thursday, bringing crypto executives and banking leaders back into the same room. There was progress, insiders say. But no breakthrough compromise has emerged just yet.
People who attended described the tone as constructive, even cooperative. Still, when the meeting ended, the central sticking points were very much alive. The gap hasn’t closed. Not yet.
Ji Kim, CEO of the Crypto Council for Innovation and a regular participant in these negotiations, called the session a sign of “focused working engagement.” He said the conversation built on previous meetings and aimed at shaping a framework that protects consumers while keeping the U.S. competitive. He also hinted that more meetings are coming. Which usually means things are moving, just slowly.
Paul Grewal, Coinbase’s chief legal officer, echoed that sentiment on X, saying the dialogue was constructive and that more progress had been made. The language was measured. Optimistic, but not celebratory.
Stablecoin Yield Remains the Core Fight
This was the third meeting in a series meant to break the deadlock around the Digital Asset Market Clarity Act. Ironically, the main roadblock isn’t even traditional “market structure.” It’s stablecoin rewards.
The U.S. banking industry has drawn a hard line over the GENIUS Act, which already became law and allowed crypto firms to offer rewards on stablecoins. Banks argue that yield-bearing stablecoins threaten their deposit base — the backbone of their business model. In short, if people can earn yield on-chain, they may move money out of traditional bank accounts.
Banking groups have demanded that the Clarity Act revisit and effectively neutralize that aspect of the GENIUS framework. At a prior meeting, bankers reportedly brought a principles document that left little room for compromise. This time, discussions stretched well beyond the scheduled two hours. According to those briefed, White House officials pressed participants to stay until they found at least some common ground. Phones were even collected during the session to keep focus locked in.
But the core issue remains: should stablecoins be allowed to offer yield?
An earlier compromise floated the idea of restricting rewards on static stablecoin balances, while still allowing incentives tied to specific activities or transactions. Banks rejected that approach. Their position has been blunt — no rewards at all.
Political Hurdles Still Loom in Congress
Even if the industries reach consensus on stablecoin yield, the legislative path isn’t guaranteed. The Senate Banking Committee would still need to advance the bill, and bipartisan support remains uncertain.
Democratic lawmakers have insisted on several major conditions. Among them: prohibiting senior government officials from holding significant crypto business interests — a proposal clearly aimed at President Donald Trump. They’ve also pushed for filling vacant seats at the Commodity Futures Trading Commission and the Securities and Exchange Commission, including Democratic appointments.
Another demand centers on stronger controls against illicit finance risks, particularly within decentralized finance. So far, Democrats say they haven’t received satisfactory concessions from Republicans or the White House.
In other words, even if industry players shake hands, Capitol Hill might not.
Why the Stakes Are So High
The Clarity Act is arguably the top policy priority for the crypto industry right now. Clear, durable U.S. regulations would remove years of uncertainty. Industry leaders believe that once the rules are settled, capital flows and institutional participation could accelerate significantly.
The sector sees regulation not as a constraint, but as a gateway. A defined framework could cement crypto’s role within the U.S. financial system rather than leaving it in limbo.
For now, though, the talks continue. Progress is being made in increments, not leaps. And until stablecoin yield and political conditions are resolved, the compromise everyone keeps referencing remains just out of reach.
