Patrick Witt, executive director of the President’s Council of Advisers for Digital Assets, has added fresh momentum to the debate around the CLARITY Act. His recent comments rejected limits on stablecoin rewards and signaled support for a version of the bill that keeps intermediaries free to offer such programs. That position has drawn attention because stablecoin rewards remain one of the main sticking points in Washington talks. At the same time, Polymarket traders have placed the odds of the CLARITY Act becoming law in 2026 at about 70%, showing that market confidence has stayed firm despite the dispute. White House Crypto Adviser Backs a No-Compromise Approach on Rewards Patrick Witt’s remarks placed him on the side of crypto firms that want to preserve stablecoin rewards through intermediaries. He argued against compromises that would block those programs, framing restrictions as a policy error at a time when lawmakers are trying to build a clear federal structure for digital assets. His position matters because he serves in a White House advisory role focused on digital assets. That support gives the crypto sector a boost even as banking groups continue to press for stricter limits. The latest discussion grew louder after industry participants pointed to pushback from bank lobby groups. Those groups have argued that reward-bearing stablecoin products could pull deposits away from traditional banks and reduce the funds that support local lending activity. Crypto executives and founders have answered that argument by defending consumer choice and open competition. Panos Mekras, co-founder and chief executive of Anodos Finance, said restrictions would unfairly protect bank profit models and limit how users manage their own money. Stablecoin Rewards Remain the Main Obstacle The broader dispute centers on whether stablecoin rewards resemble interest-bearing savings products too closely. Banking groups have said that if digital platforms attract deposits away from banks, lenders may lose a core funding source that supports credit creation across the economy. That argument has gained enough support in Congress to slow the CLARITY Act’s path. Industry negotiators have continued to defend rewards programs, especially those tied to platform activity, user engagement, and blockchain infrastructure rather than simple token holding. However, that development narrowed the industry’s room to negotiate. It also raised the cost of delay, because the Senate calendar in 2026 leaves limited time for lawmakers to move a major digital asset bill before election season takes over the agenda. Wider Political Hurdles on CLARITY Act Recent negotiations have suggested that White House advisers support a middle-ground outcome that would allow some forms of rewards. Reports from the talks said officials favored permitting incentives linked to payment activity or crypto infrastructure while showing less support for rewards that resemble deposit interest. Even so, White House support does not settle the issue in Congress. Bank representatives have continued to resist compromise, and lawmakers still hold the votes that determine whether the bill advances through the Senate. The CLARITY Act also faces other unresolved issues beyond stablecoin rewards. Some Democratic senators have asked for stronger anti-money laundering safeguards in crypto, tougher treatment of risks linked to decentralized finance, and stricter limits on personal crypto ties involving senior government officials. Market Confidence Stays Firm as the Legislative Clock Runs Despite the unresolved talks, prediction markets have kept approval odds above a coin-flip level. Polymarket recently showed around a 71% chance that the CLARITY Act will become law in 2026, reflecting continued confidence that negotiators may still find a workable path. Clarity Act into Law in 2026 | Source: Polymarket That reading matches the public tone from some crypto leaders. Coinbase chief executive Brian Armstrong and Ripple chief executive Brian Garlinghouse have both projected confidence that lawmakers can still reach an outcome this year, even though the negotiations remain difficult.
