The post ‘You’ll burn down your home?’ – Trump crypto advisor slams banks’ position on CLARITY Act appeared on BitcoinEthereumNews.com.

The banks are very anxious about stablecoin alternatives that offer users rewards of over 5%. For them, allowing stablecoins unfettered access will force depositors to flee from local banks.  In fact, the perceived deposit flight has prompted banks to adopt a hardline stance against the crypto market structure bill – The CLARITY Act. Efforts to reach a deal between banks and the crypto industry on stablecoin yield have been futile. Now, the banks are publicly pushing back against White House’s call for a compromise on the same to advance the CLARITY Act. The latest to dissent against the White House is Christopher Williston, President of the Independent Bankers Association of Texas.  He cautioned,  “Compromise on CLARITY is compromising local lending and economic production. It’s simply impossible to roll over in the fight for liquidity that powers the economies of the places we call home. This isn’t hard to understand, folks.” White House warns banks over ‘no compromise’ stance However, Trump’s crypto advisor, Patrick Witt, disagreed with Williston’s argument. According to Witt, banks stand to lose more if they maintain the strong, hardline position.  “No compromise on CLARITY means no restrictions on intermediaries offering stablecoin rewards. If you believe the banks’ argument about deposit flight, this would be catastrophic.   Feels like I’m watching an arsonist threaten to burn down their own home.” Source: X/Patrick Witt  Here, it’s worth noting that the U.S stablecoin law, the GENIUS Act, which was passed last year, allows issuers to pay rewards through intermediaries such as crypto exchanges and DeFi protocols.  As such, even if banks withdraw support for the CLARITY Act, the stablecoin rewards will still continue via intermediaries.  The CLARITY Act impasse became evident this week as President Donald Trump and his son Eric Trump slammed big banks for undermining the White House…

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Filed under: News - @ March 8, 2026 1:01 am