A White House crypto adviser said banks should not view stablecoin yield as a threat, arguing that both traditional finance and crypto firms can coexist under a shared regulatory framework. Patrick Witt, a crypto policy adviser at the White House, said the growing debate over stablecoin rewards has become unnecessarily divisive.
According to Witt, crypto platforms offering yield on stablecoins do not undermine banks’ business models or market share. He noted that banks are free to offer similar products and many are already pursuing regulatory approvals to expand into digital asset services. In his view, stablecoin yield represents an opportunity rather than a competitive risk.
CLARITY Act Talks Face Time Pressure
The disagreement over stablecoin rewards has emerged as a key obstacle in negotiations around the CLARITY crypto market structure bill. The proposed legislation aims to clearly define regulatory oversight between the Securities and Exchange Commission and the Commodity Futures Trading Commission, while also establishing a formal classification system for digital assets.
Witt warned that political timing is becoming a major concern. With the 2026 US midterm elections approaching, officials fear momentum could stall. Treasury Secretary Scott Bessent echoed those concerns, noting that a shift in congressional control could derail progress.
Witt said the administration is pushing to finalize the bill before the political window closes, calling the coming months critical for crypto regulation in the United States.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.