White House Sets March 1 Deadline on Stablecoin Dispute

The White House has reportedly set a March 1 deadline to resolve an ongoing dispute over stablecoin reward structures, as officials aim to clear the path for advancing the broader crypto market structure legislation known as the Clarity Act.

According to sources familiar with the discussions, policymakers are working to settle disagreements surrounding yield-bearing stablecoins before moving forward with comprehensive digital asset regulation.

What’s Behind the Dispute?

The current standoff centers on whether stablecoin issuers and platforms should be allowed to offer yield or rewards on dollar-backed tokens.

Some lawmakers argue that yield-bearing stablecoins function similarly to unregistered securities or money market funds, raising investor protection concerns. Others contend that restricting rewards would hinder innovation and reduce the competitiveness of U.S.-based crypto firms.

The unresolved debate has slowed progress on the larger crypto market structure framework.

Why March 1 Matters

The March 1 target appears to be a strategic push to prevent delays in the Clarity Act, which seeks to define regulatory boundaries between the SEC and CFTC and establish formal oversight standards for digital asset markets.

Officials reportedly view resolution of the stablecoin issue as a prerequisite to advancing the full legislative package.

A clear outcome would reduce uncertainty for:

• Stablecoin issuers
• Exchanges offering reward programs
• Institutional participants waiting for regulatory clarity

Broader Regulatory Implications

If a compromise is reached, it could accelerate momentum behind federal crypto legislation in 2026. Stablecoins play a central role in market liquidity, cross-border payments, and exchange infrastructure, making their treatment a cornerstone of the regulatory debate.

However, if negotiations stall, the delay could ripple into broader crypto market structure reforms.

For now, attention is focused on whether lawmakers can reach agreement before the March 1 deadline, a date that could determine the pace of U.S. crypto regulation for the remainder of the year.

The post White House Sets March 1 Deadline on Stablecoin Dispute appeared first on ETHNews.