| What to Know: - White House talks on stablecoin rewards continue without agreement, compromise signals emerge. - Rewards derive from reserve asset yields shared by issuers or exchanges. - Resolution is linchpin shaping crypto market-structure bill and near-term legislative timelines. |
Bankers and crypto policy experts met again at the White House to work through the market‑structure impasse centered on stablecoin rewards. The third session ended without agreement but with continued engagement, as reported by The Block.
The core question is whether platforms may pay interest-like "rewards" on payment stablecoins without threatening bank funding or consumer protection. The White House has signaled potential compromise concepts around rewards, though none are finalized, according to Coinpedia.
Stablecoin rewards typically reflect yield generated on reserve assets, shared with users by exchanges or issuers. Banks warn such features could pull deposits from insured accounts, while crypto firms argue a ban would push activity offshore. This safety‑and‑soundness debate is shaping definitions that could determine who may offer rewards and under what oversight.
Immediate bill impact is material because the stablecoin‑yield resolution is widely seen as the linchpin for the broader crypto market‑structure package. Industry timelines are tight as stakeholders seek action this session, as noted by Barron’s.
The current package is commonly referenced as the Digital Asset Market Clarity Act. Coinbase withdrew its support in mid‑January 2026, citing concerns with restrictions on stablecoin yield and other provisions, as reported by Decrypt.
Banking trade groups emphasize preserving community lending and safety standards and have urged lawmakers to restrict nonbank yield on payment stablecoins. "A full prohibition on exchanges, affiliates, or intermediaries paying interest, yield, or rewards on payment stablecoin holdings," said Rebeca Romero Rainey, President of the Independent Community Bankers of America.
White House mediators have set an end‑February 2026 window to try to settle the rewards question, according to Crypto Valley Journal. Without a deal, the bill’s path could narrow, and any compromise would likely specify who can offer rewards and how they are supervised.
At the time of this writing, Bitcoin traded around $67,870 with 11.75% (very high) volatility and a neutral 14‑day RSI near 35.72, based on data from CoinDesk. These conditions underscore a cautious backdrop as policy negotiations continue.
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