I'm taking some pleasure in watching the tradfi banks and the stablecoin guys going at each other.

Last Tuesday, a gathering at the White House between senior policy staff from banks and crypto firms — plus trade group representatives — ended without a deal after the bank reps circulated a one-page document entitled, “Yield and Interest Prohibition Principles,” stating that any yield or rewards tied to stablecoins should be prohibited.

In response, the Digital Chamber, an industry trade association representing over 130 crypto firms and some traditional banks investing in digital assets, published its own version on Friday, proposing principles that would let payment stablecoins generate yield within decentralized finance, or DeFi.

Sounds like the CLARITY Act is still stuck on this issue.

Three weeks into February, the clock is ticking toward the White House’s end-of-month deadline for the crypto and banking industries to agree on the stablecoin yield issue — the lynchpin to advancing the Clarity Act. We’re two meetings in, and another is potentially in the works this week, but a deal has yet to be reached.