White House Aug. 19 crypto meeting as CLARITY odds hit 21% on Polymarket

Stablecoin rewards have created another division. Banks argue that rewards tied to stablecoin balances could pull deposits from traditional lenders. Crypto companies want platforms to retain the ability to offer certain activity-based incentives.

In July, banking groups urged Thune and Senate Minority Leader Chuck Schumer to revise Section 404 of the bill. The American Bankers Association, Independent Community Bankers of America, and 76 state banking associations said the existing language did not clearly prevent incentives that operate like bank interest. The associations said community banks use deposits to fund mortgages, agricultural credit and small-business loans.

Current draft language bars interest or yield on idle payment stablecoin balances allows rewards connected to certain transactions or activities. Crypto representatives and banking groups disagree over whether the exception preserves customer rewards or creates a route around the prohibition.

A White House meeting does not itself change the bill's procedural status. Any agreement on ethics, stablecoin rewards, or other disputed language would still need support from Senate negotiators and enough lawmakers to clear the 60-vote threshold. Even if the Senate approves an amended measure, the House would need to accept the Senate text, or both chambers would have to reconcile their differences before sending a final bill to Trump for his signature.

The White House event is expected one day before the CFTC holds the inaugural meeting of its Innovation Advisory Committee in Washington. According to the CFTC's Aug. 13 agenda, committee members will discuss the regulation of crypto assets, artificial intelligence, and prediction markets during a three-hour session on Aug. 20 from 1 p.m. to 4 p.m. Eastern time.

The advisory committee can provide recommendations to the commission cannot independently issue or enforce regulations. CFTC Chair Michael Selig sponsors the panel, which includes entrepreneurs, researchers, financial industry participants, and other specialists.

Congress is considering giving the CFTC authority over spot markets for digital commodities through the CLARITY Act. Existing law already gives the agency oversight of commodity derivatives, including futures and options tied to assets such as Bitcoin (BTC).

Members of the public may submit written statements related to the IAC meeting through Aug. 27. The CFTC said qualifying submissions must identify the Innovation Advisory Committee and will become part of the public record.