Inside the meeting: White House favors some stablecoin rewards, tells banks it's time to move

CoinDesk

by Jesse Hamilton

February 19, 2026

AI-Generated Deep Dive Summary

The White House has taken a significant step toward shaping the future of stablecoin rewards and U.S. crypto market regulation. In a recent meeting with Wall Street banks and crypto industry representatives, officials emphasized the importance of allowing certain stablecoin reward programs to advance the Digital Asset Market Clarity Act (Clarity Act). The discussion focused on modifying the GENIUS Act, which currently permits broader rewards programs, to align with new regulatory guidelines. By limiting rewards tied to stablecoins that resemble deposit accounts, the White House aims to protect traditional banking interests while fostering innovation in the crypto sector. The meeting highlighted a key compromise: bankers were initially resistant to stablecoin rewards, fearing they could disrupt their core business models reliant on interest-bearing deposits. However, the White House, led by President Donald Trump's crypto adviser Patrick Witt, argued that some reward programs must be allowed to move forward the Clarity Act. This legislation is critical for governing U.S. crypto markets and aligning regulatory frameworks with industry needs. The revised approach would overhaul parts of the GENIUS Act while addressing concerns about market structure and stability. The proposed changes reflect ongoing tensions between traditional finance and decentralized technologies. By allowing limited rewards, regulators aim to strike a balance that respects innovation without undermining established financial systems. Crypto insiders hope this compromise will resolve long-standing disputes and keep the Clarity Act on track for Senate approval. If banks reject the proposal, the GENIUS Act's looser regulations would remain in place, potentially stifling progress toward clearer crypto guidelines. This development is significant for readers interested in crypto policy, as it underscores the delicate dance between innovation and regulation. The outcome of these negotiations will shape the future of stablecoins and their role in the broader financial ecosystem. Additionally, other unresolved issues, such as DeFi oversight and restrictions on government officials' involvement in the crypto industry, remain critical challenges for the Clarity Act's passage.

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Originally published on CoinDesk on 2/19/2026