White House Pushes Banks and Crypto Firms Toward Stablecoin Compromise

The White House recently hosted high-level discussions between major U.S. banks and crypto industry leaders to resolve a key dispute holding up the CLARITY Act — whether dollar-backed stablecoins should be allowed to offer yield or rewards to holders.
No agreement has been reached so far. Traditional banking groups are urging strict limits or outright bans on yield-bearing stablecoins, warning they could pull deposits out of banks and create new financial stability risks. Crypto companies argue the opposite, saying yield and rewards are essential features that drive innovation, competition, and consumer choice in digital finance.
This disagreement has become one of the biggest obstacles slowing progress on U.S. crypto market structure legislation. Policymakers are pushing both sides to find compromise language soon to keep regulatory momentum alive.
Bottom line: The outcome of this debate could define how digital dollars and traditional banking coexist — shaping the future of finance in the United States.