CLARITY Act Controversy Heats Up: White House Crypto Official Refutes View That Stablecoin Rewards Trigger Bank Deposit Outflows

Odaily News The debate over the U.S. CLARITY Act has sparked a public dispute between the banking industry and White House crypto policy officials. Christopher Williston VI, President of the Independent Bankers Association of Texas, publicly stated on platform X that if the banking industry makes compromises on this bill, it would harm local lending and economic production capacity, and he declared he would not back down on liquidity issues that support the local economy. In response, Patrick Witt, Executive Director of the White House Digital Asset Advisory Committee, argued that making no compromise on the CLARITY Act issue would mean not imposing limits on providing stablecoin rewards to intermediaries. According to the banking industry's narrative about "deposit outflows," this situation could lead to catastrophic consequences. He likened this logic to "watching an arsonist threaten to burn down their own house."