Sen. Scott says White House talks aim to balance crypto 'rewards' and bank protections under Clarity Act
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Summary
Sen. Tim Scott described White House-led talks between banks and crypto firms over how to structure 'rewards' offerings so they are not treated as savings accounts; he said both sides must compromise and community banks will be protected.
Sen. Tim Scott said banks and crypto companies met at the White House to discuss how to permit 'rewards' products without classifying them as savings accounts, and that any solution will require a compromise to protect consumers and community banks.
"We're gonna have to have a compromise there," Scott said. "Both sides have to give a little so that the average person in our country experienced democratization and lower prices and easier access." He described the need for a more complicated formula so rewards can be offered but not treated as de facto savings accounts.
Scott said the goal is to allow innovation and competition in financial services while protecting community banks and preventing the perception that rewards are deposit accounts. He did not provide legislative text, regulatory details, or a firm timeline for when a bill or rule would be completed.
During the interview the host noted banks' concerns about capital flight if rewards spread widely; Scott responded that community banks would be protected under any compromise emerging from talks at the White House.