Key Insights
- The crypto market is watching stablecoin rules as banks and exchanges remain divided.
- Disagreement over rewards has delayed major US crypto laws since 2025.
- The White House has set late February as a deadline for progress.
The US government recently brought banks and crypto market firms into the same room to talk about one problem. That problem is stablecoin rewards.
On Feb. 2, 2026, the White House hosted a closed-door meeting to push both sides toward a deal. Lawmakers want clear crypto rules. But the rules have been stuck for months.
This meeting was meant to restart progress. Nothing was signed. Nothing was finalized. But the talks show how serious the situation has become.
Stablecoin Rewards Are Blocking New Crypto Market Rules
Stablecoins like USDC and USDT are designed to stay close to $1. Many platforms now pay users small rewards for holding them. This works like interest in a bank account.
Crypto companies say this helps users and keeps money inside the crypto market system. Banks see it very differently.
They worry that people will move savings out of banks and into stablecoins. That means fewer deposits. Fewer deposits mean less money for loans. That affects homes, cars, and businesses.
This is why banks have pushed back so hard. For months, this issue has slowed down major bills in Congress.
These bills are meant to decide who controls the crypto market. Some parts go to the SEC. Some go to the CFTC. But none of it moves forward without agreement on stablecoins.
By early 2026, talks had stalled again. That is when the White House stepped in. Officials told both sides that they needed progress by the end of February.
Otherwise, more delays would follow. This meeting was the warning shot.
Here Is What Each Side Wants
The meeting was led by Patrick Witt, who works as a senior crypto advisor inside the Trump administration. He managed the discussion and kept it focused.
David Sacks was also involved in the broader talks, even if he did not run this specific session. On the crypto market side, many major companies showed up.
This included Coinbase, Ripple, Kraken, PayPal, Fidelity, Tether, Paxos, and Crypto.com. Industry groups also joined, including the Blockchain Association and Digital Chamber.
They all pushed for flexible rules, and wanted rewards to stay legal under clear limits. They argue this will attract more users and more institutions.
The banking side was smaller. Major groups included the American Bankers Association and the Bank Policy Institute.
They did not give many details after the meeting. Their statements focused on “safety” and “financial stability.” That usually means resistance. Banks are not ready to give up deposits easily.
Reports suggest that crypto market firms outnumbered bankers in the room. But numbers alone do not decide policy. Banks still have strong political influence.
This Meeting Matters Now for the Crypto Market
The White House wants follow-up talks and wants draft language ready before the end of February.
If that happens, a broader crypto market bill could finally move forward in the spring. If it fails, the deadlock continues.
When rules are unclear, banks hesitate. Funds hesitate. Companies delay products. Everything slows down. That has been the story for US crypto since 2022.
Even now, prices react more to policy hints than to many technical upgrades. After the meeting, crypto prices barely moved. There was no big rally. No crash either.
That tells its own story. Traders are waiting for action, not promises. History also shows that partial agreements often lead to full rules later. But only if momentum stays alive.
If talks break down again, markets may price in another year of uncertainty. For now, the situation looks like this: Crypto companies want growth. Banks want control. And, the White House wants a compromise.
And the crypto market is stuck in the middle, waiting to see who gives in first.