White House Crypto Meeting Targets Stablecoin Rewards Deadlock

Why the White House Crypto Meeting Could Unlock Clarity Act

The U.S. government is making a major move to save its most important crypto law. On Monday, February 2, 2026, the White House Crypto Meeting with top bosses from big banks and crypto companies. This "emergency" summit, organized by the President’s Crypto Policy Council, is designed to fix the problems currently blocking the CLARITY Act.

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This new law, known as the CLARITY Act, is meant to finally set clear rules for digital assets and decide which government agencies like the SEC or CFTC oversee which parts of the digital world. However, the bill hit a major roadblock in the Senate recently. The problem? A massive "fight for deposits" between traditional banks and digital asset firms over how stablecoins are used.

The meeting will include heavy hitters like White House "AI and Crypto Czar" David Sacks and Patrick Witt, the director of the digital asset council. They are stepping in to play referee between a banking sector that is scared of losing customers and a digital asset industry that wants the freedom to offer better deals.

Can the CLARITY Act Survive the Stablecoin Yield Dispute?

The biggest argument holding up the CLARITY Act is about "rewards." While a previous law the GENIUS Act stopped stablecoin companies from paying interest like a bank, the CLARITY Act has a "loophole." This allows digital coin exchanges to take the profit from their reserves and give it back to users as "rewards."

Banks are fighting hard to close this loophole. A recent report from Standard Chartered warns that if this continues, stablecoins could pull nearly $500 billion out of U.S. banks by 2028. For small, local banks, this "deposit flight" is a huge danger to their survival.

The Three Main Points of the Fight

The Yield Loophole: Banks want a total ban on any third-party rewards to keep people from moving their savings into stablecoins.

Unfair Competition: Crypto leaders like Coinbase CEO Brian Armstrong say that banning rewards is unfair and stops the U.S. from being a leader in tech.

The Cost of No Rules: Both sides agree that without the CLARITY , companies are left in the dark, which forces innovation to move to other countries.

Expert Analysis: Finding a Middle Ground

The White House is jumping in because they need a "win" for crypto policy before the 2026 elections. David Sacks recently mentioned that a "good compromise" means everyone walks away feeling a little bit unhappy. To get the CLARITY Act passed, digital assets firms might have to accept limits on their rewards, but in exchange, they will get the clear, fair rules they’ve been asking for for years.

If they can't agree on Monday, it could mean another year of confusing lawsuits and mixed signals. If a peace treaty isn't signed, experts believe the market will simply "build around" the law, creating a shadow banking system that no one can control. The stakes on February 2 couldn't be higher for the future of the U.S. economy.