#Whithehousecryptosummit #advisor #BTCFellBelow$69,000Again 
White House crypto adviser Patrick Witt said that banks should not fear stablecoin yield products offered by crypto platforms. According to him, these yield offerings do not threaten the traditional banking business model.
What Is the Stablecoin Yield Issue?
Many crypto platforms allow users to earn rewards (yield) on their stablecoin holdings. This has created tension because banks worry customers may move money from traditional bank deposits into stablecoins to earn higher returns.
However, Witt argues that:
Banks can also offer stablecoin products.
Several banks are applying for charters from the Office of the Comptroller of the Currency (OCC) to provide similar services.
Instead of viewing stablecoins as competition, banks could use them as a growth opportunity.
He believes both traditional finance and crypto can coexist.
What Is the CLARITY Act?
The CLARITY Act is a proposed crypto market structure bill that aims to:
Clearly define regulatory boundaries between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).
Establish a formal classification (asset taxonomy) system for cryptocurrencies.
But the disagreement over whether stablecoin issuers and platforms should be allowed to share yield with customers has become one of the biggest obstacles preventing the bill from passing.
Political Risk: 2026 U.S. Midterm Elections
U.S. Treasury Secretary Scott Bessent warned that if Democrats gain control of the House in the 2026 midterm elections, it could derail crypto legislation progress.
The White House Crypto Council wants the CLARITY Act passed before election campaigns dominate political focus, as the legislative window is narrow.
Bigger Picture
The stablecoin yield debate reflects broader tension between:
Traditional banking institutions
Crypto platforms
The core conflict revolves around customer relationships, financial control, and product innovation.
Final Takeaway
Banks are being encouraged not to see stablecoin yields as a threat.
The dispute over yield sharing is delaying major crypto regulation.
Political uncertainty in 2026 could significantly impact the future of U.S. crypto laws.
The outcome will shape how traditional finance and crypto coexist in the coming years.$