White House floats limited stablecoin rewards in third crypto, bank meeting

CoinTelegraph

by Brayden Lindrea

February 20, 2026

AI-Generated Deep Dive Summary

The White House recently hosted its third meeting between crypto and banking industry representatives to address stalled discussions over a proposed crypto market structure bill. At the center of the talks was a focus on limiting stablecoin rewards, with White House crypto adviser Patrick Witt proposing a compromise that would allow exchanges and other third parties to offer rewards tied solely to transaction activity, rather than user balances. This approach aims to prevent potential conflicts of interest while fostering innovation in the cryptocurrency sector. The meeting, held at the White House on Thursday, marked the latest effort to resolve differences over stablecoin provisions that have delayed the Senate's push to pass a comprehensive crypto bill. While no final agreement was reached during the discussions, executives from major crypto firms like Coinbase and Ripple highlighted progress made during the talks. Witt's proposed trade-off seeks to balance the interests of both traditional banking institutions and cryptocurrency exchanges, which have been at odds over how stablecoin rewards should be structured. The crypto market structure bill has become a focal point for regulators and industry players alike, as it seeks to establish clear guidelines for digital assets while addressing concerns about financial stability. The ongoing discussions reflect the growing recognition of cryptocurrencies' role in the broader financial ecosystem, with both supporters and critics seeking to align regulations with innovation without compromising traditional financial safeguards. Witt's suggestion to tie stablecoin rewards to transaction activity rather than holdings is seen as a potential middle ground that could gain support from both Wall Street and Silicon Valley. By limiting rewards based on user engagement rather than asset accumulation, the proposal aims to reduce manipulative practices while encouraging legitimate use cases for cryptocurrencies. This approach could also address concerns raised by banks and regulators about the risks associated with unregulated stablecoin distributions. The outcome

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Originally published on CoinTelegraph on 2/20/2026