The White House has called for an emergency summit on Monday to salvage the Digital Asset Market CLARITY Act, which has hit a significant roadblock in the Senate.
The impasse centers on stablecoin yield, according to a recent report by Reuters.
The stand-off
The summit, which is hosted by the White House's crypto council, aims to resolve a legislative deadlock that occurred after the Senate Banking Committee postponed a critical markup session on January 14.
The primary point of contention is a proposed amendment that would ban crypto platforms and third-party exchanges from paying "interest" or "rewards" to those who hold stablecoins.
The amendment has been heavily lobbied for by the American Bankers Association (ABA)
Traditional lenders argue that allowing stablecoin yield triggers a massive exodus of capital from traditional savings accounts.
The crypto industry, led by Coinbase, views these rewards as essential for customer utility.
Coinbase's withdrawal
As reported by U.Today, Coinbase recently withdrew its support for the CLARITY Act.
This caused a rift within the industry, with Ripple arguing that a not-so-good bill would be better than no bill.
Coinbase's move to abruptly drop its support reportedly angered the White House.
Alex Dovbnya
Caroline Amosun
Godfrey Benjamin