• The White House is convening banking and crypto industry executives on Monday to address the stalled Senate crypto market structure bill, with a focus on allowing crypto companies to offer interest or rewards on stablecoin holdings.
  • Senate hearings on the Clarity Act, which cleared the House in July 2025, are expected in January 2026, potentially unclogging its progress after stalling in the Senate.
  • Banks are pushing to close a "loophole" on stablecoin yields to protect deposits, while crypto firms resist, amid broader regulatory shifts under President Trump's pro-crypto agenda.

In a move that underscores the high-stakes battle over crypto regulation, the White House has scheduled a meeting for Monday with executives from the banking and cryptocurrency sectors. According to people familiar with the matter, the gathering will zero in on a key sticking point in the stalled Senate crypto market structure bill: the ability of crypto companies to pay interest or rewards on stablecoin holdings. This issue has sparked intense pushback from traditional banks, who fear it could erode their deposit bases.

White House crypto adviser David Sacks confirmed on December 18, 2025, via X that markups are imminent, stating the U.S. is "closer than ever" to passage under President Trump's push. The Clarity Act, which aims to resolve long-standing SEC-CFTC turf wars over crypto jurisdiction, cleared the House in July 2025 but has since languished in the Senate. With hearings expected in January 2026, sources say this meeting could be a critical step toward breaking the impasse.

"What we're really focused on is regulatory stability," one industry insider noted, echoing sentiments from earlier discussions. The debate hinges on implementation rules due by July 18, 2026, for stablecoin legislation passed in 2025 at Trump's urging. Banks argue that allowing crypto firms to offer yields on stablecoins creates an unfair advantage, while crypto companies view it as essential for competitiveness and user adoption. Efforts to restructure the bill's provisions have hit a snag, with both sides digging in their heels.

In a brief statement, a representative for the crypto sector emphasized the need for "workable rules" to sustain U.S. leadership in blockchain. Meanwhile, banking executives have privately expressed concerns about deposit flight if the loophole remains open. The White House did not immediately respond to requests for comment on the meeting's agenda, but sources indicate it will include top figures from both industries, aiming to forge a compromise ahead of the Senate hearings.

This development comes amid a broader crypto policy revolution under Trump's second term, which has seen banks allowed to hold crypto, asset managers launch crypto ETFs, and probes into crypto firms dropped. SEC Chair Paul Atkins plans an "innovation exemption" by early 2026 for new tech without burdensome rules, adding to the regulatory momentum. However, the outcome could hinge on 2026 midterm elections; Democratic control might halt progress, according to analysts.

As of Friday, crypto markets showed muted reaction, with Bitcoin trading around recent highs, but stakeholders are watching closely. "Without a deal, the industry faces continued uncertainty," another source warned, hinting at potential delays in blockchain integration targets set for August 2026. The meeting on Monday may not yield an immediate breakthrough, but it signals the administration's commitment to resolving these frictions—even as imperfections in the legislative process remain.

Correction: An earlier version misstated the date of the Senate hearings; they are expected in January 2026, not February.