The White House will mediate a dispute between banks and cryptocurrency businesses over stablecoin interest rate regulations in the stalled CLARITY Act bill.
The Trump administration is actively working to break the deadlock surrounding the CLARITY Act , one of the most important pieces of legislation structuring the cryptocurrency market in the United States. According to Reuters , senior officials will hold a meeting with banking and cryptocurrency industry leaders next Monday, amid months of stalled proceedings in the Senate.
The White House Crypto Asset Council will chair the meeting, bringing together industry associations to find solutions to the most contentious issue: regulations on interest rates and rewards for dollar- Peg stablecoins. The vote in the Senate Banking Committee was postponed earlier this month due to deep disagreements among the parties involved.
The CLARITY Act was designed to establish a comprehensive regulatory framework for digital assets, including a clear delineation of jurisdiction between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). However, the legislative process has stalled due to disagreements surrounding stablecoin yield provisions.
The confrontation between the two sides
Although the GENIUS Act, passed in July 2025, prohibits stablecoin issuers from paying interest, the law leaves a legal loophole regarding whether exchanges or other intermediaries are permitted to offer rewards. This loophole has created a deep rift between the traditional financial system and the emerging cryptocurrency industry.
Banking lobbying groups have been relentlessly pressuring Congress, demanding a complete ban on third-party stablecoin yields. On January 15, Bank of America CEO Brian Moynihan issued a serious warning that interest-bearing stablecoins could siphon up to $6 trillion out of the US banking system, leading to a contraction in lending and increased borrowing costs.
Cryptocurrency companies strongly refuted this view. Coinbase, one of the largest exchanges offering rewards to stablecoin holders, accused the bank of exploiting the legislative process to eliminate competitors. On January 14, CEO Brian Armstrong announced Coinbase's withdrawal of support, emphasizing that the company "would rather have no bill than a bad one."
However, the cryptocurrency community is not entirely united. Many influential organizations such as Coin Center, a16z, the Digital Chamber, Kraken , and Ripple still publicly support the current Senate proposal, demonstrating a divergence of opinion within the industry.
The upcoming meeting is expected to be a crucial step in mending disagreements and getting the CLARITY Act back on track. With direct intervention from the White House, the prospects for passing a comprehensive cryptocurrency legal framework in the US could be brighter in the coming months.
