Trump White House Convenes Emergency Meeting on Stalled Crypto Bill

TLDR

• Trump administration will meet with banks and crypto firms Monday to resolve stablecoin interest disputes blocking the CLARITY Act
• The CLARITY Act aims to clarify crypto regulation between the SEC and CFTC but has stalled over stablecoin yield rules
• Banks want to ban third-party stablecoin rewards, warning of potential $6 trillion deposit flight from the banking system
• Coinbase CEO Brian Armstrong withdrew support for the bill, calling it anticompetitive, while other crypto firms like Ripple and Kraken support it
• The White House crypto policy council is hosting the meeting to gather feedback on resolving the legislative impasse

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The Trump administration has scheduled a meeting Monday with banking and cryptocurrency executives to address a months-long deadlock over crypto regulation legislation. The White House crypto policy council will host the gathering to resolve disputes blocking the CLARITY Act.

The CLARITY Act is a proposed crypto market-structure bill that defines how digital assets would be regulated in the United States. The legislation would divide oversight responsibilities between the Securities and Exchange Commission and the Commodity Futures Trading Commission.

A scheduled Banking Committee vote was postponed earlier this month. Lawmakers and industry groups raised concerns about provisions governing stablecoin interest payments.

The meeting will bring together industry trade groups to discuss how the bill treats interest and rewards on dollar-pegged stablecoins. Reuters first reported the planned White House gathering.

The White House crypto policy council includes officials from the National Economic Council, Treasury, and other agencies. The group aims to collect direct feedback from market participants on resolving the bill’s problem areas.

Banks and Crypto Companies Clash Over Yield Products

The central dispute involves whether third parties can offer yield on stablecoins. The GENIUS Act, passed in July 2025, prohibits stablecoin issuers from paying interest directly to users.

However, the legislation leaves unclear whether exchanges or other intermediaries can provide rewards. This gap has created tension between crypto companies and traditional banks.

Bank lobbyists have pushed Congress for months to ban third-party stablecoin yield completely. They argue these products could trigger deposit flight from the banking system.

Bank of America CEO Brian Moynihan warned on January 15 that interest-bearing stablecoins could pull $6 trillion out of US banks. He said this could limit lending capacity and increase borrowing costs.

Crypto exchanges like Coinbase currently offer rewards on stablecoin holdings. These companies argue banks are trying to eliminate competition through legislation.

Crypto Industry Remains Divided on Legislation

Coinbase CEO Brian Armstrong withdrew company support for the bill on January 14. Armstrong stated Coinbase would “rather have no bill than a bad bill.”

Armstrong called the proposed restrictions anticompetitive. He said banks were using their lobbying power to shut down crypto alternatives.

Not all crypto companies oppose the current version. Coin Center, a16z, the Digital Chamber, Kraken, and Ripple $XRP have expressed support for the Senate’s CLARITY Act draft.

The Blockchain Association confirmed it would participate in Monday’s meeting. CEO Summer Mersinger thanked White House AI and Crypto Czar David Sacks and Patrick Witt, director of the White House crypto council.

The Crypto Council for Innovation also confirmed attendance. Trade groups hope the meeting will break the legislative stalemate.

The White House meeting represents the Trump administration’s first direct intervention in the stablecoin dispute. Industry representatives will present their positions on yield products and market structure.

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