The White House crypto adviser, Patrick Witt, has advised banks not to view stablecoin yield offerings as a competitive threat. According to Witt, banks can offer stablecoin products to their customers just like crypto platforms do, and many are now applying for OCC bank charters to provide similar products.
This comes amidst the debate over rewards paid to stablecoin holders, which has become a major obstacle in passing the CLARITY crypto market structure bill. The legislation aims to establish clear regulatory boundaries between the Securities and Exchange Commission and the Commodity Futures Trading Commission for oversight of crypto markets.
The proposed CLARITY Act would also create a formal asset taxonomy for cryptocurrencies. However, government officials and industry executives warn that the approaching 2026 U.S. midterm elections could derail the legislation and reverse crypto regulations established under President Donald Trump's administration.