White House Crypto Adviser Tells Banks to Embrace Stablecoin Yield Debate

Highlights:

• Patrick Witt says banks should not fear stablecoin yield and can offer similar products.
• Lawmakers face a narrowing window to pass the CLARITY Act before the 2026 midterms.
• The White House has paused federal Bitcoin sales and is centralizing oversight of digital assets.

White House crypto adviser Patrick Witt has urged banks to stop viewing stablecoin yield as a threat to their business. He made the remarks during an interview with Yahoo Finance this week. Witt said crypto platforms offering rewards do not undermine the core functions of the banking system. Instead, he argued that banks can compete under the same framework.

White House crypto adviser Patrick Witt stated that banks shouldn't fear stablecoin yield amid ongoing discussions in the CLARITY crypto market structure bill, which highlights the role of crypto companies and platforms offering stablecoin rewards.

— Stablecoin Beat (@Stablecoin_beat) February 14, 2026

“They can also offer stablecoin products to their customers, just the same as crypto,” Witt said during the interview. He added that reward structures do not create an unfair advantage. According to him, several banks have already applied for national trust charters through the Office of the Comptroller of the Currency. He said those moves show that institutions plan to expand digital services.

Witt acknowledged that banks worry about deposit outflows. However, he said the issue requires policy guardrails, not resistance. He noted that the White House has hosted meetings between banking leaders and crypto firms. “We are taking it so seriously,” he said. He added that officials will continue pressing both sides to work toward common ground.

Stablecoin Yield and Its Impact on the CLARITY Act Timeline

Stablecoin yield has become one of the most contested elements in negotiations over the CLARITY Act. Lawmakers are debating how the bill should address reward mechanisms. That disagreement has slowed Senate progress in recent weeks. Still, committees are working through draft language.

The House passed its version of the CLARITY Act last year. The Senate is now drafting amendments and reviewing committee text. Provisions tied to the Commodity Futures Trading Commission cleared the Agriculture Committee. However, sections linked to the Securities and Exchange Commission remain in the Senate Banking Committee.

A markup session planned for January did not move forward. Lawmakers are still negotiating the unresolved points. Treasury Secretary Scott Bessent said political changes could disrupt momentum. He warned that if Democrats regain control of the House, the chances of securing a deal could decline.

Witt stressed the urgency during the Yahoo Finance discussion. “There’s a window here. The window is still open, but it is rapidly closing,” he said. He noted that the White House Crypto Council wants the bill signed before the 2026 midterm elections consume congressional focus.

Great joining @YahooFinance this morning to discuss the status of the CLARITY Act. There are trillions of dollars in institutional capital on the sidelines waiting to get into this space. Regulatory clarity is the unlock. 🔓 https://t.co/7sGga1rmmG

— Patrick Witt (@patrickjwitt) February 13, 2026

Federal Bitcoin Oversight Developments Amid Ongoing Legislative Negotiations

Witt also addressed the federal government’s management of Bitcoin holdings. He said an executive order stopped uncontrolled liquidation by federal agencies. According to him, that action prevented potential losses that could have reached tens of billions of dollars. Officials are now working to centralize oversight of digital asset wallets.

He pointed to legislation introduced by Senator Cynthia Lummis and a forthcoming House bill from Representative Begich. Those measures would formalize authority over government digital assets. Witt said Congress would need to approve any direct purchases of Bitcoin. He added that any expansion should remain budget-neutral.

Meanwhile, policy debates around the CLARITY Act continue outside Congress. The Digital Chamber released its own principles in response to proposals from banking groups on stablecoin yields. The trade association accepted a two-year study on the impact of stablecoins on bank deposits. However, it rejected any automatic regulatory rulemaking tied to that study.

Today, The Digital Chamber is releasing principles to help illuminate the path forward on the stablecoin yield debate so that the U.S. can move forward in advancing a durable market structure bill and lead the world in crypto.

These principles push to preserve stablecoins as… pic.twitter.com/CKMgT9k7Xv

— The Digital Chamber (@DigitalChamber) February 13, 2026

Banking representatives maintain that stablecoin yields could harm the depository function of U.S. banks. A White House meeting this week did not produce a final agreement. Still, discussions continue as lawmakers weigh the bill’s next steps.