Efforts by the White House to break a stalemate over the CLARITY Act have continued this month, with policymakers and industry leaders unable to resolve a key dispute over stablecoin yield provisions. Negotiators met again this week as lawmakers pressing for a compromise face a narrowing legislative calendar.
The central issue remains how the bill treats payments tied to stablecoin holdings. Banking groups argue that any form of yield or rewards resembles deposit-like interest and should fall under bank regulation. Crypto firms counter that limiting all rewards could undercut product innovation and user incentives. Despite repeated sessions, neither side has agreed on language that would satisfy both constituencies.
Administration officials have signaled urgency, stressing the need to finalize a framework ahead of later 2026 congressional priorities. Participants described recent talks as constructive, but no consensus has emerged, leaving the bill’s progression uncertain as deadlines loom.
Stablecoin Reward Clash Persists at White House Meetings
In multiple closed-door meetings, bank executives reiterated their opposition to yield-style payments connected to stablecoins. They contend such arrangements risk competing unfairly with traditional savings products without equivalent regulatory oversight. This position has hardened in recent weeks and remains a core point of contention.
Crypto industry representatives have responded by sharpening their own proposals, including alternative reward structures tied to specific user actions rather than passive holding. Proponents argue this could preserve some competitive features without blurring regulatory distinctions. However, banks have not signaled clear acceptance of these concepts.
The White House has pushed for compromise options and encouraged both sides to adjust expectations. Officials outlined potential carve-outs that allow activity-based incentives while restricting passive earnings. Still, detailed language acceptable to all stakeholders has not been drafted, and prospects for enactment this session are viewed as tenuous without further progress.
Legislative Outlook and Policy Implications
Legislative aides familiar with negotiations say the window to advance the CLARITY Act is closing. With competing priorities on Capitol Hill, sponsors of the bill have expressed concern that delays could jeopardize its passage before midterm campaign season activity intensifies. This pressure has increased calls for tangible movement in talks.
Stakeholders note that unresolved stablecoin reward questions could affect broader digital asset regulation. The CLARITY Act is seen as a vehicle for clarifying the legal status of stablecoins and related market practices. Failure to reconcile core differences may leave long-standing policy gaps unaddressed.
As discussions continue, industry observers are watching whether negotiators can bridge the divide between risk concerns and innovation goals. Both camps acknowledge that some accommodation will be necessary to reach a final agreement.
