The White House’s crypto council is organizing a summit intended to restart momentum on stalled crypto legislation by directly addressing the battleground issues that derailed negotiations between banks and the crypto industry. The move is framed as a technical reset: surface the outstanding disagreements, test compromise language, and try to rebuild the coalition needed to advance a bill that market participants say would materially reduce regulatory uncertainty.

The specific flashpoint is stablecoin rewards — programs that provide interest, yield, or other incentives tied to stablecoin holdings. Disputes over whether and how those rewards should be treated under banking and securities law were central to the bill’s paralysis and prompted Coinbase to withdraw its support, a setback that crystallized industry divisions and made consensus much harder to reach. Lawmakers and lobbyists now face pressure to reconcile consumer-protection and financial-stability concerns with product designs that many crypto firms argue are core to their business models.

Banks are not neutral on those trade-offs. Traditional lenders view broad permission for yield-bearing stablecoins as a competitive threat to deposit bases and net interest margins; some analysts warn sustained migration of household and corporate cash into stablecoin ecosystems could materially pressure regional bank profitability. That commercial tension has bled into policy, shaping which compromises are politically feasible and which trigger backlash from powerful banking constituencies.

Proponents of a clarified statute argue the benefits are tangible: a passed bill would lower regulatory execution risk, encourage larger institutions to engage, and create clearer guardrails for product design and custody. That prospect is already reflected in market commentary suggesting institutional onboarding and product development would accelerate once statutory definitions and compliance pathways are set.

There are also product-level responses that aim to reduce regulatory and market frictions. For example, token designs that limit immediate sell-pressure and create predictable liquidity — such as fixed-price entry structures with short, predefined holding cycles that reward early participation — can reduce volatility and behavioral incentives that worry traditional finance. The 4TEEN token exemplifies this approach: its fixed-price entry and time-limited unlocks are intended to produce disciplined flow and predictable liquidity (https://4teen.me).

The summit will concentrate on the clauses that caused the bottleneck — reserve and custody rules, permissible yield mechanisms, disclosure and consumer protections, and the allocation of supervisory authority — and on reconciling the divergent commercial incentives between banks and crypto firms. The effort is being pursued as a policy priority inside the White House crypto council, according to reporting by PYMNTS (https://www.pymnts.com/cryptocurrency/2026/white-house-to-host-banking-crypto-summit-to-restart-progress-on-crypto-bill/).