White House to Host Summit on Stablecoin Rewards Amid Industry Tensions

• White House summit addresses stablecoin rewards amidst rising industry tensions.
• Coinbase, Ripple, and banking groups to meet on crypto regulations.
• Stablecoin reward debate escalates as lawmakers push for new regulations.

Next week, representatives from key crypto organizations and banking groups will meet at the White House to address a growing issue within the digital asset industry: how stablecoin rewards should be treated. The summit, which will be hosted by the White House’s crypto council, comes at a time when legislation surrounding cryptocurrencies is being hotly debated. Participants at the summit will include officials from Coinbase, Ripple, Kraken, the Crypto Council for Innovation, and the Blockchain Association, as well as banking representatives from the American Bankers Association (ABA).

The issue at hand centers around how the industry should handle rewards offered on stablecoins. Stablecoin issuers, such as Coinbase, have pushed back against proposed regulations that prohibit issuers from paying interest directly to holders. While the GENIUS Act, which cleared Congress over the summer, bans stablecoin issuers from offering such interest, it allows third-party platforms like exchanges to offer rewards. This has caused a rift with banking groups, who argue that such rewards could attract deposits away from traditional banks, potentially undermining their business model.

The push for regulation in the crypto space is intensifying as lawmakers attempt to create comprehensive laws that divide regulatory authority between the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC). With significant players in both the crypto and banking sectors participating in the upcoming summit, the stakes are high, and the outcome could shape the future of stablecoin regulations.

Also Read: Tether Expands Gold Reserves, Plans to Trade Bullion and Rival Top Banks

Stablecoin Regulations Remain a Point of Tension Between Crypto and Banking Sectors

Tensions surrounding stablecoin rewards have escalated in recent months, particularly as institutions such as JPMorgan and Coinbase have clashed on regulatory approaches. During the World Economic Forum in Davos, Switzerland, JPMorgan CEO Jamie Dimon openly criticized Coinbase CEO Brian Armstrong, reportedly calling him “full of sh**” in response to Coinbase’s stance on crypto regulations. Other banking executives also seemed to distance themselves from Armstrong, highlighting the growing friction between the crypto and banking sectors.

At the same time, crypto exchanges, led by Coinbase, argue that the current banking infrastructure is attempting to stifle competition and innovation within the digital asset space. Coinbase and other platforms see the rewards on stablecoins as a key aspect of the industry’s growth and its ability to offer consumers a competitive alternative to traditional financial products.

As the debate continues, regulatory frameworks aimed at governing the crypto industry are still taking shape. This includes a proposed bill that was recently advanced by the Senate Agriculture Committee. However, it is yet to gain significant support among Democrats, leaving the final version of the legislation uncertain.

In addition to addressing the issues around stablecoin rewards, the summit will likely discuss broader regulatory issues affecting the digital asset industry, potentially setting the stage for future negotiations between industry leaders and lawmakers. As the meeting draws closer, all eyes will be on the White House to see how this contentious issue unfolds.

Also Read: Tether Reports $10B Profit in 2025, Expands with New USAT Stablecoin and Investments

The post White House to Host Summit on Stablecoin Rewards Amid Industry Tensions appeared first on 36Crypto.