Crypto Regulation Impasse Persists as White House Meeting Draws Blank

A White House effort to resolve a prolonged dispute between major crypto firms and banks ended without a breakthrough, highlighting divisions that continue to stall major legislation aimed at regulating digital assets.

The closed-door discussion brought together senior figures from both industries and aimed to find common ground on crypto market structure legislation that has stalled for months. While participants described the talks as constructive, the central disagreements that have blocked the bill’s advance remain firmly in place.

Among those attending were representatives from the Independent Community Bankers of America, the American Bankers Association, the Digital Chamber, and the Blockchain Association.

In a statement following the meeting, White House spokesperson Kush Desai said the administration would continue engaging with stakeholders as it works to support President Trump’s goal of strengthening U.S. leadership in emerging technologies.

At the heart of the dispute is how the legislation would regulate stablecoins, particularly whether crypto firms should be allowed to offer interest or similar rewards to users who hold them. Banking groups have pressed lawmakers to include language that would prohibit such incentives, arguing they could destabilize the traditional banking system.

Banking groups have argued that permitting such rewards could draw deposits away from insured banks. Deposits serve as the backbone of bank lending, and industry representatives warn that a significant outflow could weaken the financial system and raise broader stability concerns.

Crypto firms counter that offering yields or similar benefits is essential to competing for customers. They say banning these features would give traditional banks an unfair advantage and limit innovation in a sector that already operates under regulatory uncertainty.

The White House meeting aimed to ease tensions after the Senate Banking Committee delayed a planned vote on the legislation. Lawmakers cited growing resistance from both industries and concerns that the bill lacked sufficient support to advance to a full Senate vote.

According to one person who participated in the meeting and spoke on condition of anonymity due to the private nature of the discussions, the talks did not produce an agreement. That person said further meetings at the White House are expected as officials try to bridge the gap between the two sides.

The legislation seeks to establish a federal framework for regulating digital assets. It represents years of lobbying by the crypto industry, which has long argued that existing financial rules do not adequately address blockchain-based products. Industry leaders say clear national standards are critical for companies to operate confidently in the U.S.

Enterprises like Cantor Equity Partners Inc. (NASDAQ: CEP) are waiting to see how soon an agreement can be reached to advance this needed piece of legislation.

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