Controversy heats up over the CLARITY Act, with White House crypto officials dismissing the view that stablecoin rewards trigger bank deposit outflows

Mars Finance News: The discussion of the U.S. “CLARITY Act” has sparked a public debate between the banking industry and White House officials on cryptocurrency policies. Christopher Williston VI, president of the Texas Independent Bankers Association, publicly stated on the X platform that any compromise by the banking industry on this bill would harm local lending and economic productivity, and he will not back down on liquidity issues supporting local economies. In response, Patrick Witt, Executive Director of the White House Digital Asset Advisory Committee, said that refusing to compromise on the “CLARITY Act” means no restrictions on incentives for stablecoins provided to intermediaries. According to the banking industry’s claims of “deposit outflows,” such a situation could have disastrous consequences. This logic is “like watching a arsonist threaten to burn down their own house.”