Emre Yumlu 
Debate over the future of U.S. crypto regulation continues to intensify as lawmakers work toward a comprehensive market structure bill. In recent weeks, representatives from the crypto industry and the banking sector have convened at the White House for a third round of discussions. This latest meeting focused squarely on one of the most contentious issues in the draft legislation: how stablecoin rewards should be structured and potentially limited.
As the Senate seeks to advance a bill defining regulatory oversight of digital assets, provisions related to stablecoins have emerged as a primary sticking point between traditional financial institutions and crypto firms.
Transaction-Based Rewards Instead of Balance Yield
A key proposal discussed during the meeting would allow third-party platforms — such as crypto exchanges — to offer stablecoin rewards tied exclusively to transaction activity rather than to idle account balances. Under this framework, users could earn incentives based on usage, but not on simply holding stablecoins.
This distinction is significant. Banking groups have strongly objected to models that resemble interest payments on deposited funds, arguing that such structures could blur the line between stablecoins and bank deposits. According to participants in the discussions, the concept of earning yield on passive balances is now largely off the table, narrowing negotiations to whether activity-based rewards can be permitted.
While no final agreement was reached, attendees described the tone as constructive, with detailed examination of legislative language. Discussions are expected to continue in the coming days.
Banking Sector Concerns: Competition Over Deposits
Banking organizations including the Bank Policy Institute, the American Bankers Association, and the Independent Community Bankers of America have been involved in the talks. Although these groups have not publicly commented on the most recent meeting, their concerns center on the competitive impact of stablecoin rewards.
The U.S. Treasury estimated in April that widespread stablecoin adoption could potentially lead to as much as $6.6 trillion in deposit outflows from the banking system. However, at least one banking representative reportedly suggested that competitive pressures — rather than immediate deposit flight — are the more pressing concern.
Legislative Path Remains Uncertain
This marks the third meeting between the parties following earlier sessions in early February. While the House previously passed a related bill known as the CLARITY Act, the Senate has yet to secure sufficient bipartisan support to move its version forward.
With negotiations ongoing, the final treatment of stablecoin rewards may play a decisive role in shaping the broader regulatory framework for digital assets in the United States.
You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.