White House stablecoin meeting confirms banks’ “hardline stance”…deal seen difficult despite progress in rewards talks

Talks at the U.S. White House on stablecoin rewards were seen by the crypto industry as a meaningful step forward, but observers say the banking sector’s hardline stance was reaffirmed, suggesting more time will be needed before any legislative compromise.

According to The Block on the 2nd (local time), the meeting in Washington, D.C. brought together Coinbase, major crypto industry associations, representatives of large banks and banking groups to discuss the permissible scope of stablecoin rewards and whether third-party platforms could offer such rewards. The session was chaired by Patrick Witt, executive director of the White House Digital Assets Advisory Council.

The crypto industry described the meeting as “a catalyst that got stalled discussions moving again.” Summer Mersinger, CEO of the Blockchain Association, said it was “an important step toward advancing bipartisan digital-asset market structure legislation,” adding that it was meaningful that “stablecoin rewards—one of the remaining key issues—were discussed in earnest.”

However, multiple attendees said the banking sector’s posture remained notably rigid. Banking groups repeated their longstanding argument that “stablecoin rewards could lead to deposit outflows and undermine financial stability,” and were assessed as showing little room for substantive compromise. One participant said, “The tone was calm, but the banks made it clear they see their position as structurally non-negotiable.”

In Congress, the Senate Agriculture Committee and the Senate Banking Committee are separately handling deliberations over a market structure bill to regulate the broader digital-asset market. The stablecoin rewards issue, in particular, remains a central point of contention in the Senate Banking Committee’s talks; review was previously halted after Coinbase withdrew its support over related provisions.

Cody Carbone, CEO of the Digital Chamber, said, “No final conclusion was reached at this meeting, but the points of friction and the possible scope for compromise became clearer. Still, if the banking sector’s stance does not change, considerable political coordination will be required to reach an agreement.”