The White House held a third round of CLARITY Act talks on Thursday, bringing together senior legal leaders from the crypto industry along with banking sector representatives, as officials work to break the stalemate over how the bill should address stablecoin yields.
The discussions center on both stablecoin regulation and who controls dollar liquidity in digital markets. Participants include Ripple, the Blockchain Association, the Crypto Council for Innovation, and leading banking trade groups.
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Coinbase’s Chief Legal Officer Paul Grewal the talks constructive and cooperative, adding that there is more to come. Taciau saltiniai kalba, kad no agreement has been reached yet, leaving a major U.S. crypto bill still stalled.
Core Dispute Remains Yield
The main dispute is whether stablecoin issuers and platforms should be allowed to offer interest-like incentives to users holding stablecoins.
Banking representatives have reportedly pushed for tighter limits on interest-like payouts tied to stablecoins, warning that on-chain yield products could draw deposits away from the traditional financial system and thus distort competition.
Crypto companies, meanwhile, see yield as essential for adoption and user growth, making it a core sticking point in negotiations.
The GENIUS Act, passed last summer, bars stablecoin issuers from paying direct interest but allows third-party platforms like Coinbase to offer rewards. Coinbase has become central to the debate, pulling support from a Senate Banking Committee vote over stablecoin yield concerns.
At a previous White House meetings, banks pushed for a strict ban on any benefits from holding or using stablecoins, with strong enforcement and marketing limits. Crypto industry opposed this, proposing a framework closer to the Senate draft that includes a two-year study on the impact on bank deposits.
Broader Legislative Effort
The CLARITY Act is designed to define clear regulatory authority over digital assets, splitting oversight between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).
A key point under debate is stablecoin yields: current draft amendments would permit exchanges to offer yields only if users actively trade or move their stablecoins, preventing “passive” holders from earning interest simply by keeping coins in their accounts.
Lawmakers and industry observers see political factors, such as timing of votes, partisan disagreements, and uncertainty over SEC and CFTC leadership appointments, as potentially bigger hurdles to passing the bill than the technical details of yield rules themselves.
Why This Matters
If the U.S. sets strict or unclear rules on stablecoin yields, or if the CLARITY Act is delayed, crypto firms could move more of their activity to countries with clearer, more favorable regulations. This could weaken U.S. influence over the digital dollar system, including stablecoin liquidity and infrastructure, while boosting overseas markets.
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People Also Ask:
The CLARITY Act is proposed U.S. legislation aimed at defining clear regulatory authority over digital assets, including stablecoins, and dividing oversight between the SEC and CFTC.
Yields, or interest-like rewards, are controversial because banks worry they could draw deposits away from traditional financial institutions, while crypto firms see them as essential for adoption and growth.
Regulation affects financial stability, consumer protection, and U.S. influence over digital dollar liquidity. Unclear or strict rules could push crypto activity offshore.