Crypto Legislation Stalls in Washington as Banks, White House Clash Over Stablecoin Yields

Talks surrounding landmark U.S. cryptocurrency legislation, the CLARITY Act, have reached a fresh impasse after major banks rejected a White House-brokered compromise. The core dispute centers on whether crypto exchanges should be permitted to offer yield-bearing rewards on stablecoins. Banks argue this could siphon deposits from traditional accounts, threatening lending, and are pushing for a ban on such payments. Crypto firms counter that restrictions would stifle innovation and anticompetitive practices, as stablecoins need incentives to attract customers. The White House proposed a compromise allowing limited rewards for peer-to-peer payments but not on idle holdings, which crypto firms accepted but banks opposed. President Donald Trump has publicly criticized the banks, aligning with the crypto industry's position, emphasizing consumer benefits and the need for the U.S. to maintain global crypto leadership. Lawmakers face limited time before the summer recess to resolve these disagreements.

(Source：Bitcoin Magazine)