The Trump administration is taking steps to address a legislative impasse concerning the CLARITY Act, a proposed framework aimed at clarifying the regulatory landscape for digital assets in the United States. A meeting is scheduled for Monday, involving banking and cryptocurrency executives, organized by the White House’s crypto council.
Key Stakeholders in the Discussion
Participants in this meeting will include representatives from industry trade groups, as lawmakers seek to revive discussions on how the bill addresses interest and rewards associated with dollar-pegged stablecoins. The CLARITY Act has faced delays in the Senate, with a Banking Committee vote recently postponed due to concerns over the stablecoin interest provision.
Regulatory Framework and Ongoing Disputes
The proposed legislation aims to delineate the regulatory responsibilities between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). However, progress has been hindered by disagreements regarding whether third parties should be permitted to offer yields on stablecoins.
Impact of the GENIUS Act
Complicating matters, the GENIUS Act, enacted in July 2025, prohibits stablecoin issuers from providing interest. However, it remains ambiguous whether exchanges or other intermediaries can offer rewards, creating friction between traditional banks and crypto firms. Bank lobbyists have been advocating for Congress to restrict third-party stablecoin yields, citing concerns that such practices could lead to significant deposit flight, potentially destabilizing the banking system.
Industry Reactions and Diverging Opinions
Bank of America CEO Brian Moynihan has warned that interest-bearing stablecoins could siphon up to $6 trillion from U.S. banks, which could constrain lending and increase borrowing costs. In contrast, crypto exchanges like Coinbase, which provide rewards on stablecoin holdings, argue that banks are leveraging legislation to stifle competition. Coinbase CEO Brian Armstrong recently withdrew the company’s support for the bill, stating a preference for no legislation over a flawed one.
Despite the opposition from some in the crypto sector, support for the Senate’s version of the CLARITY Act remains among several notable companies and advocacy groups, including Coin Center, a16z, the Digital Chamber, Kraken, and Ripple.
This article was produced by NeonPulse.today using human and AI-assisted editorial processes, based on publicly available information. Content may be edited for clarity and style.
