White House Crypto Council Director Patrick Witt Backs New CLARITY Act Stablecoin Rules
White House Crypto Council Director Patrick Witt has backed new stablecoin rules included in the latest CLARITY Act draft. The changes seek to limit stablecoin rewards while giving the U.S. Treasury more authority if bank deposits come under pressure. The updated text comes at the same time as a Senate cloture vote, though the legislators remain in discussions on stablecoin returns and bank safeguards. Ad Ad Patrick Witt Defends Stablecoin Reward Rules Witt said crypto companies have offered stablecoin rewards for years without causing the deposit flight feared by banks. He argued that bank deposits have continued rising rather than falling. “If the deposit flight myth were true, it would have already happened,” explained Witt. He said data available reveals that deposits are trending upward rather than downward. Discover more Trade Crypto Assets Open Trading Account Access Premium News Even so, Section 404 of the CLARITY Act limits stablecoin rewards that resemble interest paid on bank deposits. The new draft also introduces a “circuit breaker” based on anticipated deposit flight. Under the proposed mechanism, the Treasury secretary could impose further restrictions on stablecoin rewards if community banks lose deposits. If widespread deposit flight should occur within 18 months of enactment, the authority would come into effect. Witt said the compromise still gives banks









