White House Blasts Banks Over Clarity Act Stablecoin Fight

The White House has taken aim at banks lobbying against stablecoin yield provisions, with digital assets official Patrick Witt accusing financial institutions of acting out of "greed or ignorance," according to CryptoSlate.

Witt's comments reflect growing tension between the administration and the traditional banking sector over the shape of stablecoin legislation. The remarks are directed at efforts by banks to block yield-bearing stablecoin features from the CLARITY Act, a bill working its way through Congress.

Lawmakers have sought middle ground through a bipartisan compromise that would prohibit passive yield on stablecoins while permitting rewards tied to specific user activity. Banks, however, remain resistant, arguing that even limited yield models risk undermining the conventional deposit system by pulling funds away from regulated lenders.

The dispute highlights a broader struggle to define how stablecoins fit within existing financial infrastructure, and how much ground traditional banks are willing to cede as digital assets move closer to mainstream regulatory recognition.