《CLARITY Act》 Standoff Reaches Fever Pitch as Banks, Crypto Industry Dig in Heels, White House Urges Compromise by End of Month

BlockBeats News, February 14th, the stalemate over stablecoin yields in the U.S. Senate's Crypto Market Structure Bill (the "CLARITY Act") has now escalated, with the crypto camp insisting that user rewards are essential.

This week, despite urging from Trump administration officials to seek a compromise, another White House meeting between Wall Street bankers and crypto executives ended in failure. The banking side took a hardline stance, arguing that any form of stablecoin yield or reward is unacceptable, stating that such rewards would threaten the core of the U.S. banking system — the deposit business. They outlined their position in a one-page document titled "Principle of Yield and Interest Prohibition."

The Chamber of Digital Commerce, in a tit-for-tat move, released its own principles document on Friday, endorsing the terms outlining acceptable reward scenarios in the Senate Banking Committee's draft. The document made it clear: as long as it does not automatically trigger regulatory rulemaking, the bankers' proposal for a "two-year study on stablecoin deposit impact" is acceptable.

Cody Carbone, CEO of the Chamber of Digital Commerce, stated: "We want policymakers to understand that we see this as a compromise." Through this document, the industry organization has in writing signaled its willingness to give up any static holding rewards similar to traditional bank savings interest. Carbone pointed out that since last year's "GENIUS Act" is already the law, the crypto industry's willingness to forgo holding rewards is a significant concession, but rewards for activities such as transactions should be retained. Banks should return to the negotiating table.

"If they don't negotiate, then the status quo is rewards as usual," Carbone said, "If they do nothing and just demand a complete ban, this matter will not be closed." He hopes that after the recent unsuccessful White House meeting, this new document can restart negotiations.

The Chamber of Digital Commerce's principles document specifically emphasizes protecting two types of reward scenarios: rewards related to providing liquidity and rewards that promote ecosystem participation, seeing these two provisions in Section 404 as crucial to DeFi.

Reportedly, the White House has requested a compromise by the end of this month. Although the banking side has not appeared to concede in multiple meetings, Trump's crypto advisor, Patrick Witt, stated that a new round of meetings may be scheduled next week.