Regulation of Stablecoin Rewards Discussed at the White House
A new round of discussions regarding the regulation of stablecoin rewards took place at the White House on Thursday, involving U.S. officials, banking executives, and representatives from the cryptocurrency sector. This meeting marks a continuation of negotiations concerning the treatment of incentives associated with stablecoins within the framework of upcoming digital asset market-structure legislation, which has faced delays due to disagreements on this topic.
Participants and Key Discussions
Participants included members from the Crypto Council for Innovation (CCI), which advocates for significant firms in the digital currency market, along with government officials and banking representatives. Reports from The Block and CoinDesk highlighted the significance of the meeting, as discussions emphasized whether the rewards offered through stablecoins could be classified in a way that avoids them being treated as bank deposits with interest.
The debate intensifies as financial institutions warn that reward-bearing stablecoins could potentially confuse or intertwine the functions of payment systems and traditional banking deposits. Conversely, crypto proponents maintain that disallowing such rewards could compromise the attractiveness and functionality of dollar-pegged stablecoins and might drive innovation outside U.S. borders.
Future Negotiations and Legislative Uncertainty
Following the meeting, Ji Hun Kim, CEO of CCI, described the interaction as indicative of a “focused working engagement,” suggesting that further negotiations will take place. He noted, “We are working to establish a framework that benefits American consumers while enhancing U.S. competitiveness.”
Kim expressed his organization and its members’ commitment to productive dialogues aimed at progressing legislation that positions the U.S. as a leader in responsible digital asset advancements.
However, no conclusive agreements were reached during this session, and it remains uncertain whether lawmakers can settle this matter promptly enough to advance the CLARITY Act in the ongoing legislative period. The White House has yet to respond to inquiries from Decrypt regarding the discussions.
