More progress was made, but no compromise agreement has yet emerged following a meeting hosted by the White House on Thursday to bring cryptocurrency experts and bankers together again on US digital asset legislation, according to cryptocurrency experts who attended.
“Today’s constructive meeting at the White House reflects the importance of a focused work engagement,” said Ji Kim, executive director of the Crypto Council for Innovation, who has been a regular participant in the talks. “The conversation built on previous meetings to establish a framework that serves American consumers while strengthening America’s competitiveness,” he said, adding that “there is more to come” to continue progress.
“The dialogue was constructive and the tone was cooperative,” Paul Grewal, Coinbase’s chief legal officer, wrote in a post on social media site X, saying the parties made “further progress.”
This was the third in a series of meetings aimed at overcoming the impasse that has blocked the cryptocurrency market structure bill on a point that has nothing to do with market structure. The US banking industry took a stand on how the previous legislative effort that is now law – the National Innovation Guidance and Establishment for US Stablecoins (GENIUS) Act – allowed crypto companies to offer rewards for stablecoins. Bankers argue that such rewards threaten the deposit business at the heart of their industry, and have demanded that the Digital Asset Market Clarity Act echo that point from the GENIUS Act.
After the most recent meeting at which bankers arrived with a document of principles that excluded any possibility of compromise, Thursday’s meeting extended well beyond the two-hour schedule, people briefed on the talks said. White House officials pressured participants to stay until they found common ground, including collecting their phones, the people said.
The question of whether stablecoins should be able to offer yield, as in products offered to customers on platforms like Coinbase, is among the major sticking points remaining in legislation that would govern U.S. crypto markets. An earlier compromise effort sought to waive rewards for static stablecoin holdings and retain them only on certain activities and transactions made with the assets. But the banks had stood firm on the demand that all rewards be banned.
If the industries reach an agreement on this point, a victory in Congress will not yet be assured. The Senate Banking Committee needs to hold a hearing to consider moving the legislation forward, just as the Senate Agriculture Committee did when it voted along party lines to approve its own version. But to get a bill through the Senate, the process will need the participation of many Democrats, and that hasn’t happened yet.
Democratic negotiators have pressed some important points, such as prohibiting top government officials from having major business interests in cryptocurrencies, a concern aimed squarely at President Donald Trump. They have also called on the White House to fill committees on the Commodity Futures Trading Commission and the Securities and Exchange Commission, including nominating them to fill Democratic vacancies. Additionally, members have demanded stricter controls on illicit financial risks, especially in decentralized finance (DeFi).
None of their requests have yet found offers from Republicans and the White House that have so far satisfied Democrats.
The Clarity Act is the top policy priority for the crypto industry. Once US regulations are permanently established, the sector is expected to see an increase in activity and investment as it becomes an indelible part of the US financial system.
Read more: Banking trade groups responsible for deadlock on market structure bill, says Brian Armstrong
UPDATE (February 19, 2026, 19:17 UTC): Add a comment from Ji Kim of CCI.
