Overview
- A two-hour White House session with crypto firms and banking groups ended without agreement on whether stablecoin balances can carry issuer- or third-party-paid rewards.
- Advisers led by Patrick Witt directed a smaller working group to return this month with concrete bill language to resolve the yield dispute.
- The CLARITY Act remains stalled in the Senate Banking Committee after the Senate Agriculture Committee advanced its portion last week.
- Banking trade groups continue to push for prohibitions or strict limits on rewards, citing deposit-flight risks, including projections such as Standard Chartered’s $500 billion outflow estimate.
- Industry support is divided, with Coinbase having withdrawn over proposed reward restrictions as crypto trade groups called the White House talks constructive but unresolved.