The White House has criticized the banking sector for its persistent resistance against a proposed stablecoin yield compromise within the CLARITY Act, labeling their actions as driven by either greed or ignorance. Patrick Witt, executive director of the Presidential Advisory Committee on Digital Assets, highlighted this stance during remarks on April 17, condemning banks’ intensified lobbying efforts to block yield-bearing stablecoins in upcoming legislation.
U.S. lawmakers have proposed a bipartisan compromise for the CLARITY Act, which would allow activity-based rewards while banning passive yields on stablecoin balances. Despite attempts by the White House to mediate between banks and the cryptocurrency sector over the past year, these efforts remain unsuccessful. The Tillis-Alsobrooks amendment reflects ongoing tension, as banking trade associations argue it threatens traditional financial structures.
The American Bankers Association has warned that allowing a stablecoin yield could result in $6.6 trillion in deposit outflows. Contradicting this, the Council of Economic Advisers reported that a complete ban on stablecoin yields would cost consumers $800 million and have minimal impact on bank lending while forfeiting consumer benefits from competitive returns.
Bank representatives insist that expanding yield-paying payment stablecoins could shift deposits away from banks to large institutions, reducing overall lending capacity. Meanwhile, the demand for yield-bearing stablecoins is surging. According to Messari, their supply has increased 15 times faster than the broader market over six months.
Amidst legislative delays and rapid market changes, time pressures mount for lawmakers. Sen. Thom Tillis mentioned ongoing negotiations on the compromise text, with a possible announcement next week from Sen. Angela Alsobrooks. If unresolved by April’s end, passage in 2026 seems unlikely, with Sen. Cynthia Lummis suggesting it could be postponed until 2030.
The crypto industry warns that yielding to banking demands would hinder domestic innovation. Dan Spuller of the Blockchain Association emphasized the need for a balanced approach: “Stablecoins are fully reserved payment tools, not deposit-taking institutions. If we get this right, America wins.”