White House Tables Limited Stablecoin Rewards Proposal in Third Sector Meeting

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The White House has introduced a new compromise in ongoing negotiations between crypto and banking lobbyists, suggesting that stablecoin rewards should be limited to transaction activity only. The proposal emerged during the third meeting between the two groups in just over two weeks, as they attempt to break a deadlock over a comprehensive crypto market structure bill.

Representatives from the crypto and banking industries convened at the White House on Thursday for their third session in 16 days. The talks focused specifically on stablecoin provisions that have stalled the legislation, which the Senate is now aiming to pass. Despite the ongoing gridlock, no definitive agreement was reached during the latest discussions.

Executives from major crypto firms indicated that tangible progress was made. A White House crypto adviser reportedly urged a trade-off that would allow third parties, such as exchanges, to offer stablecoin rewards. Under the proposed framework, these rewards would only be permitted on transaction activity rather than on static balances, potentially addressing regulatory concerns about stablecoins functioning as unregistered securities.