White House Convenes Banks and Crypto Companies Amid CLARITY Act Deadlock

Officers within the administration of US President Donald Trump are reportedly set to sit down down with executives from the banking and cryptocurrency industries on Monday as lawmakers try to revive the stalled CLARITY Act.

Individuals acquainted with the matter told Reuters the assembly might be hosted by the White House’s crypto council and will convey collectively trade commerce teams to debate how the invoice treats curiosity and different rewards provided on dollar-pegged stablecoins.

The laws has been held up within the Senate for months, with a scheduled Banking Committee vote postponed earlier this month amid considerations from lawmakers and trade teams over the stablecoin curiosity provision.

The CLARITY Act is a proposed crypto market-structure bill that seeks to make clear how digital property are regulated in the USA, together with how oversight can be divided between the Securities and Change Fee (SEC) and the Commodity Futures Buying and selling Fee (CFTC).

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Banks and crypto corporations conflict over stablecoin curiosity guidelines

Progress on the CLARITY Act has been slowed by a dispute over whether or not third events needs to be allowed to supply yield on stablecoins.

Whereas the GENIUS Act, handed in July 2025, bars stablecoin issuers from paying curiosity, it leaves open whether or not exchanges or different intermediaries can present rewards, a spot that has fueled stress between crypto corporations and conventional banks.

For months, financial institution lobbyists have pushed Congress to ban third-party stablecoin yield, arguing it may trigger deposit flight and weaken the banking system. On Jan. 15, Financial institution of America CEO Brian Moynihan warned that interest-bearing stablecoins may draw as a lot as $6 trillion out of US banks, doubtlessly constraining lending and elevating borrowing prices.

Crypto exchanges similar to Coinbase, which supply rewards on stablecoin holdings, argue that banks are trying to make use of laws to get rid of competitors. On Jan. 14, Coinbase CEO Brian Armstrong withdrew the company’s support for the bill, saying Coinbase would “slightly haven’t any invoice than a foul invoice.”

Opposition to the invoice inside the crypto sector is just not uniform. A number of outstanding corporations and advocacy teams, together with Coin Middle, a16z, the Digital Chamber, Kraken and Ripple have expressed support for the Senate’s proposal.

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