White House Hosting Talks on CLARITY Act and Other Crypto-Related Legislation
Senior officials from US President Donald Trump’s administration are preparing to meet with leading banking institutions and crypto executives to revive the long-stalled CLARITY Act for digital assets.
According to familiar sources, the meeting is expected to be held under the White House Crypto Council, which has already convened multiple sessions. The talks will bring together major industry trade groups to address one of the most controversial provisions of the CLARITY Act—whether stablecoins should be permitted to earn interest or rewards for holders.
The outcome of these discussions could either revive the legislation or see it collapse under mounting political and industry pressure.
Why the CLARITY Act Has Been Held Up in the Senate
The CLARITY Act has faced months of delays in the US Senate, with a planned vote by the Senate Banking Committee postponed earlier this month. Lawmakers and industry leaders continue to question the bill’s treatment of yield-bearing stablecoins, particularly US dollar-pegged tokens.
The bill aims to provide regulatory clarity for the US crypto industry by defining digital assets and clarifying the oversight roles of the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).
Disagreements over stablecoin rewards have turned the CLARITY Act into a flashpoint between traditional finance and the crypto sector.
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Stablecoin Yield Sparks Conflict Between Banks and Crypto
Banks Warn of Financial Instability
Traditional banks argue that allowing crypto platforms to offer yields on stablecoins could trigger massive deposit outflows.
Bank of America CEO Brian Moynihan stated that interest-bearing stablecoins could siphon off up to $6 trillion in US bank deposits, potentially reducing lending capacity and increasing borrowing costs across the economy.
Since then, banking lobbyists have intensified pressure on lawmakers to close what they view as a dangerous regulatory loophole.
Crypto Companies Push Back
Cryptocurrency firms counter that banks are using regulation to suppress competition. The GENIUS Act restricts stablecoin issuers from paying interest, but it remains unclear whether crypto exchanges or third parties fall under this restriction—an ambiguity that has fueled incentive programs.
Tensions escalated when Coinbase CEO Brian Armstrong withdrew his endorsement of the CLARITY Act, stating the company would “rather have no bill than a bad bill.”
CLARITY Act Divides the Crypto Industry
Despite perceptions of unity, the crypto industry is split. The Senate version of the CLARITY Act has gained backing from several influential organizations, including Coin Center, Andreessen Horowitz (a16z), The Digital Chamber, Kraken, and Ripple.
Supporters argue that without clear rules, innovation will continue moving offshore, weakening America’s leadership in digital finance.
What’s at Stake for US Crypto Regulation
The upcoming White House meeting could be decisive. If consensus is reached on stablecoin yield rules, the CLARITY Act may advance. Failure to agree could relegate the bill to another casualty of political division and industry infighting.
With billions of dollars, regulatory authority, and the future of US crypto leadership on the line, the estimated $2 trillion battle over the CLARITY Act could become one of the most consequential financial policy debates of the decade.
