Controversy surrounding the CLARITY bill intensifies as White House crypto officials refute claims that stablecoin rewards are causing an outflow of bank deposits.

According to Mars Finance, discussions surrounding the US Clarity Act have sparked a public debate between the banking industry and White House crypto policy officials. Christopher Williston VI, president of the Texas Independent Bankers Association, stated on the X platform that any compromises by the banking industry on the act would harm local lending and economic productivity, and declared that he would not back down on the issue of liquidity supporting local economies. In response, Patrick Witt, executive director of the White House Digital Assets Advisory Council, argued that no compromise on the Clarity Act would mean no restrictions on stablecoin rewards offered by intermediaries. He further stated that, according to the banking industry's narrative of "deposit outflows," this could have disastrous consequences, a logic described as "like watching an arsonist threaten to burn down your own house."