The White House is expected to host another round of talks this Friday between representatives of the crypto industry and major banking institutions, as both sides race to meet a March 1 deadline aimed at advancing the long-delayed crypto market structure bill (CLARITY Act). The renewed discussions come after weeks of negotiations in Washington, D.C., where participants have been attempting to bridge a key divide over the treatment of stablecoins.SEC Safe Harbor And Strategic Crypto ReserveThe dispute has centred on whether stablecoin issuers should be permitted to offer interest on unused token balances. However, as Bitcoinist reported earlier this week, the prospect of paying interest-like returns on dormant stablecoin holdings — a priority for many crypto-native firms — has effectively been ruled out. The conversation has instead shifted toward a narrower question: whether companies may provide rewards tied to specific user actions or engagement, rather than simply compensating users for holding balances.Despite signs that at least one contentious issue may be cooling, expectations for Friday’s meeting remain high. Market expert Paul Barron has suggested the gathering could produce several significant developments. In a recent post on X, Barron predicted a potential truce between banks and stablecoin issuers. He also floated the possibility of formal Treasury protocols governing a proposed strategic reserve, including Bitcoin (BTC), Ethereum (ETH), and XRP.In addition, Barron suggested that the Securities and Exchange Commission (SEC) could introduce “safe harbor” guidelines designed to reduce enforcement actions and provide clearer regulatory pathways for crypto projects.However, reporting from Eleanor Terrett of Crypto In America indicates that a breakthrough may not yet be imminent. DeFi And Ethics Issues Might ResurfaceCiting sources on both sides of the negotiations, Terrett noted that no decisive “eureka” moment has emerged since draft legislative language was circulated following last week’s meeting, which participants described as constructive. That session marked the third formal attempt by industry and banking representatives to find common ground. It remains uncertain whether an agreement will be finalized by the White House’s March 1 target date or whether negotiators will settle on a compromise that prompts a public announcement.Attention is now expected to return to other unresolved matters within the broader market structure framework. Concerns surrounding decentralized finance (DeFi) and ethical considerations are likely to resurface, particularly during a Senate Democratic member meeting on market structure scheduled for Wednesday afternoon. With the deadline fast approaching, the upcoming White House session may prove pivotal in determining whether months of negotiations translate into legislative progress or whether further delays await the CLARITY Act.Featured image from OpenArt, chart from TradingView.com