White House May Reconvene As Banks Push Ban on Stablecoin Yield in CLARITY Act

Talks to finalize the long-awaited CLARITY Act appear to be back on — and one of the sharpest flashpoints is stablecoin yield. Sources tell Crypto In America reporter Eleanor Terrett that the White House is considering reconvening leaders from banks and crypto firms as soon as Thursday to try to resolve outstanding differences. Officials have not yet made a final decision or confirmed plans. The follow-up would pick up after a previous White House meeting last week that involved senior policy staff from major banks, crypto companies and trade groups but ended without agreement. At the center of the impasse is a one-page proposal circulated by banking representatives called “Yield and Interest Prohibition Principles.” The document argues that stablecoins should be prohibited from offering yield or rewards — a hard line that directly conflicts with parts of the crypto industry that support interest-bearing products and incentives tied to stablecoins. Ripple CEO Brad Garlinghouse has publicly expressed optimism that the sides can bridge the gap. In comments reported by The Street, Garlinghouse urged the crypto community to support the bill rather than hold out for perfection, saying “clarity is better than chaos.” He predicted the remaining disputes could be resolved quickly and estimated roughly an 80% chance the CLARITY Act will be signed into law by the end of April. Why it matters: a blanket prohibition on stablecoin yield would reshape product design and business models across DeFi and crypto lending markets, while passage of the CLARITY Act would provide the regulatory clarity many firms say they need to scale. The coming days could determine whether compromise is possible or whether the standoff over yield becomes a dealbreaker. Image credit: OpenArt. Chart: TradingView.com. Read more AI-generated news on: undefined/news