{"id":71887,"date":"2026-02-11T10:01:34","date_gmt":"2026-02-11T10:01:34","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=71887"},"modified":"2026-02-11T10:01:34","modified_gmt":"2026-02-11T10:01:34","slug":"crypto-clarity-act-no-deal-in-white-house-yield-meeting","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=71887","title":{"rendered":"Crypto Clarity Act: No Deal in White House Yield Meeting"},"content":{"rendered":"
\n

A White House meeting aimed at breaking the logjam over stablecoin rewards under pending crypto market structure legislation aka Clarity Act ended without a compromise, even as both banking and crypto participants described the session as \u201cproductive,\u201d according to details shared by Crypto In America reporter Eleanor Terrett citing sources in the room.<\/p>\n

The follow-up gathering, smaller than the first meeting last week, zoomed in on what has become the most combustible line item in the Clarity Act debate: whether, and under what constraints, crypto firms can offer \u201crewards\u201d tied to stablecoin usage<\/a>. The White House urged both sides to reach a deal by March 1, Terrett reported, though it remains unclear whether another meeting of this scale will occur before the end of the month.<\/p>\n

Crypto Clarity Act Update<\/h2>\n

Terrett said banks and banking trade groups came prepared with a written handout titled \u201cYield and Interest Prohibition Principles,\u201d framing \u201cpayment stablecoins\u201d as payment instruments and pushing for a bright-line ban on consideration paid to holders.<\/p>\n

\u201cIn the GENIUS Act, Congress specifically designed payment stablecoins to be payment instruments,\u201d the document states. \u201cConsistent with this design, market structure legislation should incorporate the following yield and interest prohibition principles to limit deposit outflows that reduce the availability of credit for communities.\u201d<\/p>\n

The handout\u2019s core demand is sweeping: \u201cNo person may provide any form of financial or non-financial consideration to a payment stablecoin holder in connection with the payment stablecoin holder\u2019s purchase, use, ownership, possession, custody, holding, or retention of a payment stablecoin.\u201d It pairs that with a call for regulator enforcement authority and civil monetary penalties, anti-evasion language, and strict marketing and disclosure rules that would bar firms from implying rewards are \u201cinterest,\u201d \u201crisk-free,\u201d or comparable to insured deposits.<\/p>\n

One source highlighted a narrow shift in bank posture: the inclusion of \u201cany proposed exemptions\u201d language, which Terrett said was viewed as a concession because banks had previously been unwilling to discuss exemptions \u201cwith respect to offering rewards on a transaction-based basis at all.\u201d Even so, the handout insists exemptions must be \u201cextremely limited in scope\u201d and must not \u201cdrive deposit flight that would undercut Main Street lending.\u201d<\/p>\n

Terrett reported<\/a> that a major share of the discussion centered on \u201cpermissible activities\u201d: the types of account behavior that could qualify a crypto firm to offer rewards. Crypto representatives want those definitions broad; banks want them narrowed. That framing captures the heart of the dispute: whether rewards can be designed as functional incentives for payments activity, or whether any such consideration is inherently deposit-like and therefore destabilizing for traditional funding models.<\/p>\n

Ripple Chief Legal Officer Stuart Alderoty struck an optimistic tone after the session, writing via X: \u201cProductive session at the White House today \u2013 compromise is in the air. Clear, bipartisan momentum remains behind sensible crypto market structure legislation. We should move now \u2013 while the window is still open \u2013 and deliver a real win for consumers and America.\u201d<\/p>\n

Dan Spuller, EVP of the Blockchain Association, described<\/a> the meeting as a shift from general debate to \u201cserious problem-solving,\u201d while underscoring the gap that remains. \u201cStablecoin rewards were front and center,\u201d he wrote. \u201cBanks did not come to negotiate from the bill text, instead arriving with broad prohibitive principles, which remains a key disagreement.\u201d<\/p>\n

The meeting was led by Patrick Witt<\/a>, Executive Director of the President\u2019s Crypto Council, and included Senate Banking Committee staff, Terrett reported. Crypto-side attendees included Coinbase\u2019s Paul Grewal, a16z\u2019s Miles Jennings, Ripple\u2019s Alderoty, Paxos\u2019s Josh Rosner, Blockchain Association CEO Summer Mersinger, and Ji Kim of the Crypto Council. Banks represented included Goldman Sachs, JPMorgan, Bank of America, Wells Fargo, Citi, PNC Bank, and U.S. Bank, alongside trade groups including the Bank Policy Institute, the American Bankers Association, and ICBA.<\/p>\n

Mersinger said the continued convenings signal momentum even without a deal. \u201cToday\u2019s second White House meeting reflects continued, meaningful momentum toward delivering bipartisan digital asset market structure legislation, and we\u2019re encouraged by the progress being made as stakeholders remain constructively engaged on resolving outstanding issues,\u201d she said. \u201cWe\u2019re thankful to Patrick Witt and the Administration for their continued leadership and commitment to keeping this process moving forward.\u201d<\/p>\n

For now, the White House appears to be applying time pressure rather than dictating terms. Further discussions are expected \u201cin the coming days,\u201d Terrett reported, setting up a race to define \u201cpermissible activities\u201d narrowly enough to satisfy banks, but broadly enough for crypto firms to preserve rewards<\/a> as a competitive product feature before the March 1 target date.<\/p>\n

At press time, the total crypto market cap stood at $2.26 trillion.<\/p>\n

\"Total<\/div>\n","protected":false},"excerpt":{"rendered":"

A White House meeting aimed at breaking the logjam over stablecoin rewards under pending crypto market structure legislation aka Clarity Act ended without a compromise, even as both banking and crypto participants described the session as \u201cproductive,\u201d according to details shared by Crypto In America reporter Eleanor Terrett citing sources in the room. The follow-up […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":0,"footnotes":""},"categories":[2],"tags":[3,4,5],"class_list":["post-71887","post","type-post","status-publish","format-standard","hentry","category-news","tag-crypto","tag-doge","tag-news"],"_links":{"self":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/71887","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=71887"}],"version-history":[{"count":0,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/71887\/revisions"}],"wp:attachment":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=71887"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=71887"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=71887"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}