White House adviser calls stablecoin deposit outflow a myth ahead of CLARITY Act vote
- —Witt called the deposit outflow argument a myth, citing growth in bank deposits
- —Section 404 prohibits stablecoin rewards equivalent to interest on deposits
- —A new "circuit breaker" gives the Treasury the right to limit rewards for 18 months
- —Eight banking groups, including the ABA, BPI and ICBA, are demanding stricter rules before the vote
Why it matters: The outcome of the vote will determine U.S. rules on stablecoin rewards and the balance between banks and the crypto industry.
Source: The Crypto Times