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U.S. officials resumed talks with banks and crypto groups on stablecoin rewards. Lawmakers are debating whether rewards trigger deposit-like regulation. The unresolved issue could delay progress on the CLARITY Act. U.S. officials met with banking leaders and crypto industry representatives at the White House on Thursday to revisit one of the most divisive issues in digital-asset legislation: stablecoin rewards. Lawmakers continue to debate how to regulate yield or incentive programs tied to dollar-pegged tokens under the proposed CLARITY Act. The session included administration officials, major lenders, and members of the Crypto Council for Innovation (CCI). Participants aimed to determine whether stablecoin issuers can offer rewards without facing classification as deposit-taking institutions. Stablecoin Rewards at the Center of Debate Stablecoin incentives allow token issuers or affiliated platforms to offer yield-like benefits to holders. Crypto companies argue that such rewards increase adoption and strengthen the competitiveness of U.S.-based digital dollar products. Banks strongly disagree. They also state that the addition of yield on stablecoins will make it difficult to distinguish between payment tokens and traditional interest-bearing bank deposits. Financial institutions believe that such models may disrupt the current banking system and pose systemic risks. The lawmakers are now at a crossroads. They can choose to regulate reward-bearing stablecoins as bank deposits. This will result in stablecoin issuers being subject to stricter regulations. Alternatively, if lawmakers permit the use of rewards without considering them as deposits, banks may view this as regulatory arbitrage. CLARITY Act Faces Legislative Hurdles The CLARITY Act aims to clarify how federal regulators regulate digital assets. However, the dispute over rewards on stablecoins has brought developments to a standstill. Parties involved need to develop a balanced approach that promotes both innovation and financial stability. CCI Chief Executive Ji Hun Kim called Thursday’s session a constructive one. He stated that…

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Filed under: News - @ February 20, 2026 10:24 am