White House Talks Over CLARITY Act Stall as Banks and Crypto Clash on Stablecoin Yield

White House-led discussions intended to advance the CLARITY Act—a market-structure bill for crypto—ended Monday without a deal after banking and crypto representatives failed to bridge differences over whether stablecoin issuers and related third parties should be allowed to offer yield or rewards on stablecoin holdings ^[1][4]. The meeting, held at the Eisenhower Executive Office Building, included major players from both sides, including Coinbase and trade groups representing traditional banks and the digital-asset industry ^[1][2].

The impasse leaves the CLARITY Act unresolved and the pathway for federal stablecoin rules unclear. Separately, reports that a UAE official made a $500 million investment in a crypto venture tied to President Donald Trump’s family have introduced conflict‑of‑interest concerns that could further complicate the bill’s prospects ^[3].

For now, Washington has not picked a side: talks have stalled and key regulatory questions about stablecoin yields remain unsettled, keeping the CLARITY Act’s future uncertain ^[1][4].