White House Convenes Banks and Crypto Firms for CLARITY Act Discussions: Sources
According to Reuters, the White House has scheduled discussions with banking institutions and cryptocurrency firms for Monday as disputes concerning stablecoin interest payments and third-party yield offerings continue to stall advancement of the CLARITY Act.
Representatives from US President Donald Trump's administration are scheduled to meet with leaders from both the traditional banking sector and the cryptocurrency industry on Monday, according to reports, as legislative efforts to advance the stalled CLARITY Act continue.
Sources with knowledge of the planned meeting informed Reuters that the White House's cryptocurrency council will facilitate the gathering, bringing together various industry trade organizations to address how the proposed legislation handles interest payments and additional rewards provided on stablecoins pegged to the US dollar.
The proposed legislation has remained stalled in the Senate for several months, with a Banking Committee vote that had been scheduled being delayed earlier this month due to apprehensions raised by both lawmakers and industry representatives regarding the provisions related to stablecoin interest.
The CLARITY Act represents a proposed legislative framework for crypto market structure that aims to establish clear guidelines for how digital assets will be regulated within the United States, including establishing a clear division of regulatory authority between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).
Banks and crypto companies clash over stablecoin interest rules
Forward movement on the CLARITY Act has been hindered by disagreements over the question of whether third-party entities should have permission to offer yield on stablecoin holdings.
The GENIUS Act, which became law in July 2025, explicitly prohibits stablecoin issuers from paying interest to holders, but it does not clarify whether cryptocurrency exchanges or other third-party intermediaries can provide such rewards, creating an ambiguity that has intensified friction between the crypto industry and conventional banking institutions.
Over the past several months, banking industry lobbyists have urged members of Congress to ban third-party stablecoin yield offerings, contending that such products could lead to massive deposit outflows and destabilize the traditional banking system. On Jan. 15, Brian Moynihan, CEO of Bank of America, issued a warning that stablecoins offering interest could result in as much as $6 trillion being withdrawn from US banking institutions, which could potentially limit lending capacity and increase borrowing costs for consumers.
Cryptocurrency platforms like Coinbase, which currently provide rewards to users holding stablecoins, contend that traditional banks are attempting to leverage legislation to suppress competitive alternatives. On Jan. 14, Brian Armstrong, CEO of Coinbase, publicly withdrew his company's backing for the legislation, declaring that Coinbase would "rather have no bill than a bad bill."
Resistance to the proposed legislation within the cryptocurrency industry is far from unanimous. Multiple well-known companies and advocacy organizations, including Coin Center, a16z, the Digital Chamber, Kraken and Ripple have publicly voiced their support for the Senate's version of the proposal.