White House crypto chief says banks must also compromise on CLARITY Act

David Sacks, head of AI and cryptocurrency at the White House, said via X that it is time for the banking sector to make corresponding concessions on the CLARITY Act, a bill on crypto market structure. He argued that the crypto industry has already made a significant compromise regarding interest on stablecoins. Sacks added that Patrick Witt, executive director of the White House Crypto Advisory Council, is working to find a compromise between the banking and crypto industries. The White House reportedly pushed for negotiations over the weekend to reach an agreement before March, but the two sides remain far apart, and a committee vote has not yet been scheduled. The banking sector is demanding strict restrictions on stablecoins, arguing they can function like deposits, a position opposed by crypto firms like Coinbase. Other key points of contention include the scope of limits on exchange incentives, the obligations of DeFi developers, and regulatory jurisdiction.