Crypto and Banks: Can They Share the Pie?

The crypto world and traditional banks are at odds over stablecoin yields. But a White House adviser says this doesn't have to be a zero-sum game. Patrick Witt thinks both sides can find common ground. Stablecoins are digital currencies pegged to traditional assets like the US dollar. Crypto companies offer rewards to customers who hold these stablecoins. Banks see this as unfair competition. But Witt disagrees. He believes banks can also offer similar products. Many banks are already applying for charters to do just that. Witt is optimistic about the future. He thinks banks will find ways to use these products to grow their businesses. This could lead to new opportunities for both banks and crypto companies.But there's a catch. The crypto industry is waiting for clear regulations. The CLARITY Act aims to define the roles of the SEC and CFTC in crypto markets. It also wants to create a classification system for cryptocurrencies. However, time is running out. The 2026 midterm elections could derail these efforts. If Democrats take the House, the chances of passing the CLARITY Act could diminish. Treasury Secretary Scott Bessent warns that the window for a deal is closing. Witt and his team are racing against time to get the bill passed before the elections. The crypto industry is at a crossroads. It needs clear regulations to grow and thrive. But political uncertainty could delay these efforts. The question is, can crypto and banks find a way to coexist? Or will the lack of clear regulations hold the industry back?