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flag White House to mediate bank-crypto clash over stablecoin rules amid fears of $500B deposit loss and stalled Clarity Act.

flag Leaders in the banking and cryptocurrency sectors will meet at the White House to settle disagreements impeding the Clarity Act, with an emphasis on regulations governing interest and rewards on dollar-pegged stablecoins. flag While cryptocurrency companies claim these incentives are essential for growth and competitiveness, banks warn that they could cause a $500 billion deposit outflow by 2028, endangering financial stability. flag The House passed its version in July, but the Senate postponed a vote because of unresolved issues and Republican divisions. flag In light of the high stakes for regulatory clarity and U.S. leadership in digital finance, the White House Crypto Council is hosting the meeting with the goal of finding common ground.

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