Clarity Act Fails March 1 Deadline as Stablecoin Yield Dispute Stalls Progress
Source Beincrypto
The White House’s self-imposed deadline for banks and crypto to resolve their stablecoin standoff has come and gone.
With no deal in sight, trillions in institutional capital now hang in the balance.
Why it matters:
- Stablecoin legislation is widely seen as the gateway to mainstream crypto adoption in the US.
- Without it, regulatory uncertainty persists, enforcement risk rises, and innovation continues migrating to friendlier jurisdictions in Europe and Asia.
The details:
- The March 1 deadline set by White House Crypto Council Executive Director Patrick Witt has passed without a compromise on stablecoin yield.
- Crypto firms are pushing for the legal right to offer regulated rewards on stablecoins like USDC.
- Meanwhile, banks, fearing deposit flight if users chase 4–5% stablecoin returns over 0.01% savings rates, are lobbying for strict limits or an outright ban.
- A banking source told Crypto In America that while there’s broad agreement stablecoin balances shouldn’t earn direct interest, crypto firms are still attempting to engineer yield through “membership programs, rewards, and staking” — a workaround banks say is holding up the deal.
- The OCC may have bolstered the banks’ position, signaling in its latest GENIUS Act rulemaking that stablecoin rewards could face tighter limits than the crypto industry anticipated.
The big picture:
Disclaimer: For information purposes only. Past performance is not indicative of future results.
Recommended Articles
SEC Chair Paul Atkins says the U.S. missed opportunities to regulate crypto and is now trying to move faster to support innovation.
Prediction markets draw scrutiny as 'insiders' cash in on Iran weekend attacksAfter placing some amazingly accurate bets that the United States would strike Iran, six anonymous accounts on Polymarket won almost $1.2 million. All of this occurred just hours before real bombs began to fall on Tehran and other locations in Iran on February 28. Bubblemaps, a blockchain analytics company, investigated and located those six accounts. […]
After placing some amazingly accurate bets that the United States would strike Iran, six anonymous accounts on Polymarket won almost $1.2 million. All of this occurred just hours before real bombs began to fall on Tehran and other locations in Iran on February 28. Bubblemaps, a blockchain analytics company, investigated and located those six accounts. […]
Rising tensions around the Strait of Hormuz are once again forcing crypto traders to look beyond blockchain fundamentals and toward global macro risk.Roughly 20% of the world’s oil supply passes daily
Polymarket recorded a single-day notional trading volume of $478 million, with the politics category alone accounting for $220 million, nearly half of total daily activity.Elsewhere, rival prediction
Pi Coin price is attempting to recover after forming a new all-time low earlier this month. The altcoin has shown modest strength in recent sessions, holding above key short-term support. However, bro
