President Trump's White House crypto council is convening banking and cryptocurrency executives on Monday, February 2nd, in what's being described as a last-ditch effort to save the CLARITY Act—landmark legislation that's been stalled for weeks over a fundamental disagreement about yield-bearing stablecoins.
The dispute centers on whether crypto companies can offer interest or rewards on dollar-backed tokens held by customers. Coinbase CEO Brian Armstrong publicly withdrew support for the bill in mid-January, arguing that restrictions giving banks preferential treatment are worse than no law at all. His company generates $355 million quarterly from stablecoin services and offers yield on $USDC holdings.
Banks counter that widespread adoption of yield-bearing stablecoins could pull trillions in deposits away from the traditional system, threatening financial stability. Meanwhile, Ripple, Kraken, a16z, and the Blockchain Association still support the compromise. The meeting is hosted by David Sacks, head of Trump's crypto policy council, and will include representatives from multiple trade groups. If negotiations fail, the bill could remain in legislative limbo through March or later.