White House crypto adviser says banks shouldn't fear stablecoin yield

CoinTelegraph

by Vince Quill

February 13, 2026

AI-Generated Deep Dive Summary

White House crypto adviser Patrick Witt has downplayed concerns that crypto companies offering stablecoin rewards pose a threat to traditional banks. Speaking with Yahoo Finance, Witt emphasized that the banking industry should not feel endangered by such practices, asserting that both sectors could ultimately find opportunities to collaborate rather than compete. He expressed optimism about the potential for banks to adapt and integrate these products into their offerings, potentially expanding their services and customer appeal. The issue of stablecoin yield has emerged as a significant point of contention in the ongoing discussions around the CLARITY crypto market structure bill. Witt acknowledged the friction between the crypto industry and traditional banking institutions over this matter but argued that it is not inherently harmful to banks. He suggested that crypto service providers sharing rewards with customers does not undermine the broader business model or market share of banks, which rely on deposits and loans as their primary sources of income. Witt’s comments reflect a growing recognition within regulatory circles that the crypto industry and traditional financial institutions need to find common ground rather than viewing each other as competitors. He believes that banks will eventually see the value in leveraging stablecoin products to innovate and enhance their own services, ultimately benefiting both industries. This perspective aligns with broader efforts to create a more inclusive and adaptive financial ecosystem. The implications of Witt’s remarks are significant for readers interested in crypto and blockchain developments. They highlight the potential for collaboration between traditional finance and decentralized platforms, which could shape the future of financial innovation. As regulators and stakeholders continue to navigate the complexities of integrating crypto into mainstream banking systems, such insights underscore the importance of open dialogue and mutual understanding. Ultimately, Witt’s message serves as a reminder that the crypto market is evolving rapidly, and both banks and crypto companies have opportunities to thrive in this new landscape. By fostering collaboration rather than conflict, these industries can work together to drive innovation while maintaining stability and trust in financial systems.

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Originally published on CoinTelegraph on 2/13/2026