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- Debashree Patra
Debashree Patra
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Nidhi KolhapurNidhi is a Certified Digital Marketing Executive and Passionate crypto Journalist covering the world of alternative currencies. She shares the latest and trending news on Cryptocurrency and Blockchain.
- Feb 20, 2026 07:51 UTC
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White House Sets March 1 Deadline for Stablecoin Rewards Decision
White House signals limited stablecoin rewards may stay in the Clarity Act, pushing banks toward compromise as negotiations continue.
Stablecoin reward rules inch toward compromise in the Senate Digital Asset Market Clarity Act, with banks and lawmakers weighing next steps.
The White House signaled possible progress in the ongoing fight over stablecoin rewards during its latest closed-door meeting with banking and crypto industry leaders.
The session, held on Thursday, marked the third round of talks tied to the Senate Digital Asset Market Clarity Act, a major bill aimed at setting clearer rules for the U.S. crypto market.
What Happened Inside the Room?
According to people familiar with the discussions, White House negotiators indicated that some form of stablecoin rewards will remain in the next draft of the bill. This marks a shift from earlier uncertainty and increases pressure on banks to accept a middle ground.
Banking groups had previously pushed for a full ban on stablecoin rewards. They argued that offering incentives could pull deposits away from traditional banks and weaken lending activity.
At the latest meeting, however, banking representatives worked on revised language that would allow limited rewards tied to specific transactions or activities, while blocking programs that function like interest simply for holding stablecoins.
The White House team, led by President Donald Trump’s crypto adviser Patrick Witt, urged both sides to move quickly so the broader legislation can advance.
The Agenda Behind the Talks
The main goal of the meeting was to break the deadlock over stablecoin yield provisions, one of the biggest sticking points in the Clarity Act.
While the bill mainly focuses on defining regulatory authority across crypto markets, the stablecoin section has become central to the debate.
The talks also addressed how the new framework would reshape last year’s stablecoin law, known as the GENIUS Act. The compromise under discussion would place tighter limits on rewards programs than current law allows but would stop short of a full ban.
March 1 Becomes the Key Deadline
The White House has now set March 1 as the deadline to resolve the stablecoin rewards dispute and move the Clarity Act forward.
At this stage, the entire bill is effectively stalled over one core question:
Should stablecoin holders be allowed to earn yield?
Officials made it clear that:
- No agreement means no progress on the bill
- A deal by March 1 could allow U.S. crypto regulation to finally move ahead
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What Action Was Taken
No final agreement was reached, but participants described the meeting as constructive. The White House is expected to circulate updated draft language reflecting the proposed compromise.
Banking groups will review the changes before any deal is finalized.
If they sign off, the revised language would likely appear in the next version of the market structure bill, improving its chances in the Senate.
What Comes Next
Despite the progress, several issues remain unresolved. Some Democratic lawmakers are still pushing for stronger protections around decentralized finance and more oversight measures.
For stablecoin issuers, the White House’s support for limited rewards is cautiously positive. Whether the momentum holds will depend on how far banks are willing to go in accepting the compromise.
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FAQs
It’s a proposed U.S. bill designed to define crypto market rules, clarify oversight, and set standards for stablecoins and digital assets.
Stablecoin rewards offer yield to holders. Banks fear they could drain deposits, while crypto firms argue they boost innovation.
If passed, it may allow limited rewards tied to activity, but restrict interest-like programs for simply holding stablecoins.
Without a compromise, the entire crypto market structure bill could stall, delaying clearer U.S. crypto regulations.
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