Clarity Act controversy heats up: White House crypto official refutes the view that stablecoin rewards trigger bank deposit outflows

Odaily Planet Daily reports that discussions over the U.S. CLARITY Act have sparked public disputes between the banking industry and White House officials on crypto policy. Christopher Williston VI, president of the Texas Independent Bankers Association, publicly stated on X that if the banking sector compromises on the bill, it will 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.”