Executives from Coinbase and Ripple indicated that talks have made gradual progress. Ripple’s chief legal officer, Stuart Alderoty, said discussions focused on “specific wording,” while Paul Grewal, Coinbase’s chief legal officer, described the atmosphere as constructive and collaborative.
Summer Mersinger, CEO of the Blockchain Association, said the meeting represented a positive step toward resolving disagreements over stablecoin incentives.
Transaction-based rewards, not balance-based
According to reports by journalists Eleanor Mueller and Eleanor Terrett, the latest round of negotiations was led by White House crypto adviser Patrick Witt.
Witt reportedly pushed for a compromise that would allow third parties, including exchanges, to offer stablecoin rewards linked to transaction activity rather than idle balances. Providing yield on stored balances — a major objective for some parts of the crypto industry — now appears increasingly unlikely to gain approval.
Meanwhile, the US Senate is drafting legislation to clarify how digital assets should be regulated, following the House’s passage of the CLARITY Act in July. However, the Senate Banking Committee has not yet secured enough bipartisan support.
Several banking groups attended the meeting, including the Bank Policy Institute, American Bankers Association, and the Independent Community Bankers of America, but none issued public statements afterward.
Banks raise competition concerns
Banks have warned that stablecoin rewards could threaten traditional deposit models. An estimate released by the US Treasury in April suggested that widespread adoption of stablecoins could lead to trillions of dollars moving out of bank deposits.
However, one banking representative at the meeting reportedly said the more immediate concern is competitive pressure rather than direct risks to deposit levels.
Further discussions are expected in the coming days as both sides continue to evaluate the proposed compromise.
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