The White House is set to convene with banking and cryptocurrency executives to address stalled legislation on digital assets, known as the Clarity Act. This meeting aims to find common ground on issues that have divided the two sectors, particularly regarding customer rewards on stablecoins. Stablecoins are digital currencies pegged to the dollar, and their regulation is crucial as they gain traction in the financial system. The Senate has been working on this bill for months, following extensive lobbying from the crypto industry. Existing regulations are seen as insufficient, and companies argue that clear legislation is necessary for their operations. The House already passed its version in July, but debate in the Senate has faced delays, largely due to disagreements over how interest on stablecoin holdings should be treated. Some lawmakers are concerned that the bill may not garner enough support, especially given the competing interests at play. Crypto firms assert that offering interest on deposits is vital for attracting customers, while banks worry this could lead to significant deposit outflows, undermining their financial stability. A report from Standard Chartered estimates that stablecoins could siphon off around $500 billion in deposits from U.S. banks by 2028. The current regulatory framework prohibits stablecoin issuers from paying interest, but banks believe a loophole could allow third parties, like crypto exchanges, to offer competitive yields. This meeting is a critical step in addressing the regulatory landscape for cryptocurrencies, particularly as the industry pushes for more favorable treatment of stablecoin rewards. The outcome could reshape how digital assets operate in the U.S. and affect both traditional banks and emerging crypto firms.