Latest Payments News: White House Confident of Stablecoin Rewards Compromise for CLARITY Act, and more

Catch up on some of the stories our payments compliance analysts have covered lately, and stay up-to-date on the latest news.

White House Confident of Stablecoin Rewards Compromise for CLARITY Act

As US lawmakers continue to contest the legality of stablecoin rewards payouts under the CLARITY Act, a key White House official has expressed confidence that a legislative compromise is imminent.

Patrick Witt, executive director of the President's Council of Advisors for Digital Assets, spoke to Crypto In America this week and shared news of three closed-door meetings between representatives of the US crypto and banking industries regarding the bill.

During the third meeting, attendees “took a stab” at incorporating new language into the Digital Asset Market Clarity (CLARITY) Act, in an effort to allay the fears of their respective industries.

The banks fear that the crypto industry is attempting to “exempt” itself from the statutory “prohibition” on the payment of stablecoin yield, interest and rewards that they believe was established by the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act.

The crypto industry, on the other hand, does not see the GENIUS Act as imposing such a blanket prohibition, and remains confident that a carve-out can be made for so-called “activity-based” rewards.

“Yesterday was a big step forward,” Witt said of the third meeting. “We were getting down to individual text, line by line, trying to thread the needle between permitting activity-based rewards and addressing the concerns raised.

“I think we’ve narrowed the issue set considerably and had some clear call-outs for members to provide feedback on outstanding areas. The field of disagreement has shrunk considerably.”

The White House is operating to an ambitious deadline, with Witt expressing hope that a consensus on the rewards question can be reached by March 1, 2026.

Should this target be met, the CLARITY Act would return to the Senate Banking Committee for a markup of the revised text, potentially in March or April.

Following this, the bill faces reconciliation and must secure floor time in the Senate. Given the “tremendous time” and investment from both sides, there is a strong desire to advance the legislation and have it signed into law by the President.

However, the final scheduling of any future markup remains the prerogative of Senator Tim Scott (R-SC), the chair of the Senate Banking Committee.

New York’s Standalone BNPL Framework Sets a Regulatory Precedent for the US

As the state formalises its bespoke licensing regime, providers will need to review pricing structures and focus on transparency and disclosures to meet consumer protection standards.

Proposals announced by the New York State Department of Financial Services (DFS) implement the Buy Now, Pay Later (BNPL) Act, enacted in May 2025, which creates a comprehensive supervisory framework for BNPL providers operating in the state.

Among other things, the regulations aim to introduce a licensing and supervision framework for BNPL activity in New York, prohibit excessive fees and limit late and penalty fees, establish rules for the timely resolution of consumer disputes and protect consumer data from misuse or exploitation.

Announcing the framework, New York Governor Kathy Hochul said: “These new nation-leading regulations ensure that lenders know we have clear disclosures, limits on fees and real oversight so families don't get pushed into a debt spiral while big financial companies cash in.”

The regulatory timeline is tight: a ten-day pre-proposal comment period began on February 23, 2026, to be followed by a formal 60-day public comment period upon publication in the State Register.

The Potential Impact of a UK Card Network on the Payments Landscape

In addition to the much-discussed objective of payments sovereignty, a domestic alternative could lead to greater operational resilience and a decrease in the complexity of remaining compliant.

The Guardian newspaper reported this week that banking leaders intend to hold a first meeting with the aim of establishing a UK alternative to US-based card networks Visa and Mastercard.

The idea of a national card scheme is prompted by concerns over the fracturing relationship between the US and Europe, and fears that the Trump administration could leverage the dominance of Visa and Mastercard for its own ends.

As covered by Vixio, heightened geopolitical friction is forcing nations to rethink how exposed they are to financial systems beyond their control. As these tensions rise, governments are increasingly concerned about the sovereignty of their payment rails.

The Bank of England is leading the design phase of the project, and DeliveryCo, a private entity, will handle the procurement and build.

The UK’s project is likely to be based on account-to-account (A2A) payments rather than a more traditional card scheme.

The first meeting is to be chaired by Barclays’ UK chief executive Vim Maru in his capacity as chair-designate of DeliveryCo.

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