Banks Reject White House Deal on Crypto Market Bill Amid New Roadblock

The recent development in the crypto market bill has brought it closer to becoming a contentious issue in Washington D.C. Banks have expressed their inability to support the compromise proposed by the White House, which was aimed at breaking the impasse on the CLARITY Act.

According to sources, bank executives have rejected the latest compromise that was proposed by the White House to make a deal on the CLARITY Act. This comes just after President Trump called out banks to make a deal as soon as possible and accused them of deliberately holding up the crypto market bill.

The White House's compromise allows for stablecoin rewards to be made possible under certain circumstances, such as P2P transactions. However, banks claim that they still want to severely restrict the circumstances under which rewards can be made possible. They have also suggested ways to advance the crypto market bill without putting deposits at risk.

Firms like Coinbase have expressed their concerns about being barred from offering rewards to gain customers, saying it would be anticompetitive if they were restricted from doing so. Meanwhile, Standard Chartered estimated that $500 billion could be drained out of American banks by the end of 2028 if they are allowed to offer stablecoins.

With this new setback, it remains to be seen whether the bill can still be passed into law this year. The bill still has to clear hurdles regarding disagreements between senators regarding ethics and illicit finance provisions, as well as limited Senate floor time before lawmakers return to Washington in the summer for mid-term elections campaigning.