Last updated on March 6th, 2026 at 09:53 pm
The White House has reportedly narrowed discussions between crypto firms and banking lobbyists to a key sticking point in proposed US crypto market structure legislation: how stablecoin rewards should be structured.
Representatives from the crypto and banking sectors met Thursday for the third time in just over two weeks to negotiate provisions that have delayed Senate progress on a broader regulatory bill. While no formal agreement was reached, participants described the talks as constructive.
The following statement is attributed to Blockchain Association CEO @SummerMersinger following today’s White House meeting: pic.twitter.com/as05LVDoYZ
— Blockchain Association (@BlockchainAssn) February 19, 2026
Executives from Coinbase and Ripple signaled incremental progress. Ripple’s chief legal officer, Stuart Alderoty, said negotiators “went through specific language,” while Coinbase’s legal chief, Paul Grewal, called the tone cooperative.
Summer Mersinger, CEO of the Blockchain Association, described the meeting as a step forward in resolving disputes over stablecoin incentives.
Rewards on transactions, not balances
According to reports from journalists Eleanor Mueller and Eleanor Terrett, White House crypto adviser Patrick Witt led the latest round of talks.
Witt reportedly advocated for a compromise that would allow third parties such as exchanges to offer stablecoin rewards tied to transaction activity rather than to idle balances. Yield on stored balances, a key goal for parts of the crypto industry, appears increasingly unlikely to gain approval.
The Senate is working on legislation to clarify how US market regulators oversee digital assets, following the House’s July passage of the CLARITY Act. However, the Senate Banking Committee has yet to secure sufficient bipartisan backing.
Banking groups at the meeting included the Bank Policy Institute, American Bankers Association and Independent Community Bankers of America, none of which publicly commented afterward.
Banks cite competition concerns
Banks have argued that stablecoin rewards could undermine traditional deposit models. An April estimate from the US Treasury suggested widespread stablecoin adoption could result in trillions of dollars flowing out of bank deposits.
However, one banking representative at the meeting reportedly indicated that competitive pressure rather than direct deposit flight risk is the more immediate concern.
Further discussions are expected in the coming days as both sides weigh the proposed trade-off.
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