Stablecoin Rewards Remain Roadblock to Crypto Bill After White House Summit

Crypto market structure legislation remains stalled after a closed-door meeting at the White House failed to resolve differences over the payment of interest and other rewards on stablecoins, Reuters reported Tuesday (Feb. 3).

Held Monday (Feb. 2) and hosted by the White House’s crypto council, the meeting brought together representatives of the banking and crypto industries, according to the report.

Participants included the American Bankers Association (ABA), the Independent Community Bankers of America (ICBA), the Blockchain Association and The Digital Chamber, per the report.

The meeting was intended to reach a compromise between the two industries, according to the report. However, while both sides said the summit was constructive, no agreement was reached on issues that have halted the legislation’s progress for months, the report said, citing an unnamed source.

There are likely to be additional meetings on these roadblocks, the source said, per the report.

A joint statement released Monday after the meeting by the banking trade groups said that the meeting was constructive and that they would continue to work with the White House and other stakeholders.

“As we shared in the meeting, we must ensure that any legislation supports the local lending to families and small businesses that drives economic growth and supports the safety and soundness of our financial system,” the joint statement said. “Banks of all sizes will continue to work with lawmakers, the White House and other stakeholders to help develop thoughtful, effective policy around digital assets.”

The joint statement was signed by the ABA, ICBA, Bank Policy Institute, Consumer Bankers Association and Financial Services Forum.

The ABA said in an article about the meeting that the group and others “have been urging senators to use the bill to close a loophole that could allow crypto firms to bypass the Genius Act’s prohibition on paying interest or yield on payment stablecoins.”

Blockchain Association CEO Summer Mersinger said in a statement released Tuesday that the meeting was an important step toward finding solutions and that stablecoin rewards is one of the key remaining issues.

“Blockchain Association remains committed to working with policymakers across the aisle to get good legislation signed into law,” Mersinger said in the statement. “And we will continue pushing for pro-innovation, pro-consumer policy that positions the United States at the forefront of global technological innovation and ensures the President’s vision of America as the crypto capital of the world is fully realized.”

The Digital Chamber CEO Cody Carbone said in a Tuesday post on X that the group is optimistic that the issue blocking the legislation can be resolved.

“We look forward to continuing this kind of work to ensure market structure rules of the road will become law before this Congress ends,” Carbone said in the post.