White House Talks Fail to Break Deadlock on U.S. Crypto Legislation

WASHINGTON, Feb. 3, 2026 — A White House meeting intended to unlock stalled U.S. cryptocurrency legislation ended without a breakthrough, highlighting deep divisions between the banking sector and the digital-asset industry that continue to block progress on a long-awaited regulatory framework.

The closed-door discussions, organized by the White House’s crypto council, brought together senior representatives from major banking and crypto trade groups in an effort to revive negotiations on crypto market structure legislation that has been frozen for months. While participants from both sides described the talks as constructive, no agreement was reached on the core issues that derailed the bill.

At the center of the dispute is how the legislation should treat stablecoin rewards, including interest payments and similar incentives. Traditional banks are pushing for explicit language that would prohibit crypto firms from offering such rewards, arguing that they could trigger a large-scale shift of deposits away from insured lenders.

Crypto companies counter that restricting rewards would stifle competition and limit innovation, saying incentives are essential for attracting users in a fast-growing financial technology market. Industry groups warn that banning rewards would entrench incumbent banks and undermine the broader goal of fostering a competitive digital-finance ecosystem.

Legislative Progress Stalls

The White House intervention followed the Senate Banking Committee’s decision last month to delay consideration of the bill amid escalating opposition from both industries and uncertainty over whether the legislation had enough support to advance.

Participants included representatives from leading banking associations as well as prominent crypto advocacy groups. Despite the high-level engagement, a source familiar with the discussions said the meeting failed to bridge the fundamental policy divide.

Further talks are expected in the coming weeks as the administration attempts to broker a compromise and keep the legislation alive.

What’s at Stake

The proposed legislation—widely known as the Clarity Act—would establish a federal framework governing digital assets, an objective the crypto industry has pursued for years. Supporters argue that existing financial regulations were not designed for blockchain-based assets and leave companies operating in a legal gray area.

The House of Representatives passed its version of the bill last year, but Senate progress has stalled as lawmakers weigh concerns about financial stability, competition, and consumer protection.