Crypto: The White House intervenes in the face of Senate blockage on the rules for digital assets

Faced with the Senate's persistent blockage on the regulation of digital assets, the White House plans to bring together leading figures from the banking sector and the crypto industry this Monday. Objective: try to unblock a major bill. This meeting comes against a backdrop of high tensions in Congress, despite growing pressure from both the industry and the administration to clarify the legal framework for cryptocurrencies.

Regulation slowed down by persistent disagreements

According to Reuters, the meeting will be led by the White House crypto council and will focus on a major sticking point: rewards linked to stablecoins. This subject is at the heart of the current blockages within the Senate Banking Committee and is slowing down the progress of a text originally supposed to achieve consensus.

Tensions are crystallizing around the GENIUS law, adopted in July 2025, which prohibits stablecoin issuers from paying returns directly to holders, while allowing third-party platforms, such as exchanges, to offer incentives. This difference in treatment is at the center of the criticism. Banks see this as an unfair advantage given to crypto companies.

This regulatory divide reflects opposing industry positions. Banking associations fear that a lack of clarity around incentives for stablecoins will push deposits to flee traditional banks, particularly weakening local establishments. Conversely, part of the crypto sector accuses banks of wanting to curb competition, recalling that this debate was already underway even before the GENIUS law came into force.

The White House is trying to bring the two camps together

In this context, the meeting requested by the White House is seen as an attempt to reestablish dialogue between two industries which have been at odds for years on the issue. It also reflects the Trump administration's desire to relaunch the legislative process, which has remained at a standstill in recent months.

The main crypto organizations appear open to discussion. Summer Mersinger, CEO of the Blockchain Association, welcomed the initiative. According to her, the industry wishes to actively engage with political leaders to build a sustainable regulatory framework and maintain the competitiveness of the United States in the global digital economy.

An active Chamber, a lagging Senate

The current blockage comes after several years of intensive lobbying aimed at recognizing the specificities of digital assets. Industry companies have consistently argued that existing financial regulations do not adequately cover blockchain-based assets. An appropriate framework is, according to them, essential to guarantee the legal certainty of the American market. These efforts enabled the adoption of the Clarity Act by the House, after review by the Financial Services and Agriculture committees, with the support of several elected Democrats.

Meanwhile, progress in the Senate is proving much slower than expected. Several blockages remain:

• The Senate Agriculture and Banking Committees must still review and approve their bills before a vote can take place in plenary session. Without agreement between the two, legislation cannot move forward.
• A hearing, initially scheduled for January 15, was canceled following the withdrawal of support from Coinbasehighlighting ongoing disagreements over digital securities and stablecoin incentives.
• The Senate Agriculture Committee, however, plans to hold a hearing this Thursday, although the proposals released last week did not receive support from Democratic members.

This sluggish pace of the Senate has only reinforced the executive's calls for a global framework for the crypto-asset market. Patrick Witt, executive director of the Presidential Advisory Council on Digital Assets, said a crypto market structure law will eventually see the light of day. “It’s not a question of if, but when”he said. He considers that current conditions are conducive to the adoption of such a reform: a president favorable to cryptocurrencies, a Congress aligned with this political will, and an industry sufficiently mature to support its implementation. But he warns: any delay could lead, in the event of a future crisis, to harsher and punitive legislative responses.