White House Accuses Major Banks of Refusing to Engage on Stablecoin Rewards Issue Ahead of CLARITY Act Markup

The White House has escalated its criticism of major U.S. banks for their refusal to participate in discussions on stablecoin rewards, a contentious issue tied to the upcoming CLARITY Act. Patrick Witt, executive director of the White House Presidential Advisory Committee on Digital Assets, publicly called out banking trade leaders for skipping February meetings aimed at resolving the debate over stablecoin yield mechanisms.

The dispute highlights growing tensions between traditional financial institutions and the crypto industry as lawmakers prepare to advance legislation that could reshape dollar-based payments and digital asset markets. The CLARITY Act, scheduled for markup on May 14, seeks to establish a comprehensive framework for digital assets but has become mired in controversy over competition for deposits and consumer yield products.

Witt's remarks reveal the banking industry's opposition emerged earlier than previously known, suggesting entrenched positions ahead of critical policy decisions. The standoff reflects broader struggles over financial innovation, with stablecoins increasingly seen as both a competitive threat to traditional banks and a potential pillar of future payment systems.