Officials from US President Donald Trump’s administration are preparing to meet with senior executives from banks and cryptocurrency companies as discussions resume around the stalled CLARITY Act, a proposed framework for regulating digital asset markets in the United States. The meeting, expected to take place Monday, is being organized by the White House crypto council and aims to address unresolved disputes that have blocked legislative progress.
Stablecoin Yield Remains Central Point of Disagreement
At the center of the deadlock is whether third parties should be allowed to offer yield on dollar-pegged stablecoins. While the GENIUS Act, passed in July 2025, prohibits stablecoin issuers from paying interest, it leaves ambiguity around rewards offered by exchanges or intermediaries. This gap has fueled months of disagreement between traditional banks and crypto platforms.
Banking groups argue that interest-bearing stablecoins could accelerate deposit outflows, potentially weakening the banking system. In January, Bank of America’s CEO warned that as much as six trillion dollars could shift away from US banks if such products are widely permitted.
Industry Divisions Complicate Path Forward
Crypto firms counter that restricting stablecoin rewards would limit competition and innovation. Some exchanges have publicly withdrawn support for the bill, while others—including advocacy groups and blockchain companies—continue to back the Senate’s approach.
Coinbase CEO Brian Armstrong says Coinbase would “rather have no bill than a bad bill.”
The CLARITY Act seeks to define how digital assets are regulated and how oversight is divided between the SEC and CFTC. Whether renewed talks can resolve the stablecoin yield dispute may determine the bill’s future.
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