White House crypto policy chief: Banks must also make concessions on stablecoin revenue issue

David Sacks, the White House official overseeing artificial intelligence (AI) and digital-asset (cryptocurrency) policy, called for progress toward a compromise in the debate over stablecoin interest and urged an appropriate response from the banking sector.

On the 27th (local time), Sacks wrote on X that “Patrick Witt, the White House digital-asset adviser, is moving negotiations forward between the banking industry and the digital-asset industry and is actively working to get the market-structure bill, the ‘CLARITY Act.’, passed.” He added that “the digital-asset industry has made meaningful concessions on the stablecoin revenue portion,” and urged that “banks should show a commensurate stance as well.”

The issue of whether to pay interest income on stablecoins has recently been cited as a factor behind delays in legislating the CLARITY Act. Banks are concerned that paying returns on stablecoins could trigger deposit outflows and instability in the financial system. Industry figures, by contrast, argue that stablecoins should be able to provide yields to users even within a regulated environment.

Market participants say that if the two sides fail to find common ground, passage of the market-structure legislation itself could become uncertain. The White House and the industry, however, are still keeping the door open to a deal and continuing talks.