The White House’s effort to broker a compromise between the crypto industry and major banking groups over digital-asset market structure has stalled once more, as the Iran war threatens to push the issue further down Washington’s agenda.
The Trump administration had aimed to secure a framework agreement by 1 Mar in the long-running negotiations, but that target passed without a breakthrough and no formal timetable has been set for what comes next.
Timeline slips
Industry representatives told Sandmark that developments in the Middle East have made it unclear when the next steps will take place. While discussions are continuing, momentum on Capitol Hill appears to be slowing.
The administration has been convening closed-door talks aimed at unlocking progress on a broader digital-asset market structure package, but the stablecoin rewards issue has emerged as the key fault line. Banks have argued that allowing yield payments would intensify deposit flight, while crypto firms say rewards are central to competing with offshore markets.
Ripple CEO Brad Garlinghouse said on 28 Feb that "the door to a deal is wide open," suggesting that resistance from the banking industry remains a key obstacle to compromise. "The banks just need to act in good faith and walk through it," he said.
Election calendar adds pressure
Digital-asset groups have continued to cast the talks as constructive. In a 27 Feb X post, Summer Mersinger, CEO of the industry advocate group the Blockchain Association, described negotiations as "complex," with "multiple stakeholders" involved. According to Mersinger, the White House has been "leading these conversations in good faith," tough the efforts are now likely to be frustrated by geopolitical priorities.
"We will continue working constructively with the banking sector and other partners to narrow gaps," Mersinger said.
For now, Senate progress remains stalled, and any outcome before the midterm elections will depend on whether Washington’s attention returns to domestic financial policy amid the unfolding foreign crisis.
