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The White House is stepping in to mediate a growing dispute between US banks and crypto firms that has stalled progress on major digital asset legislation. According to reporting, the administration plans to convene senior executives from both industries in an effort to find a compromise and restart momentum behind the “Clarity Act,” a bill aimed at creating clearer federal rules for crypto markets.
The key friction point is stablecoins, specifically whether issuers should be allowed to offer interest or rewards on stablecoin balances. Crypto firms argue this is essential for competitiveness and user adoption, while banks warn it could draw deposits out of the traditional banking system and create knock-on financial stability risks. A Standard Chartered estimate cited in the coverage suggested stablecoins could pull hundreds of billions of dollars away from banks by 2028, which is exactly the type of systemic shift regulators want to avoid.
If the White House succeeds in brokering a workable middle ground, it could unlock one of the most significant regulatory developments for US crypto in years, providing clearer market structure rules while avoiding a full-scale clash with the banking sector.
Lloyds Lifts Outlook After Profits Beat Expectations, Despite Motor Finance Charge
Lloyds Banking Group upgraded its outlook after reporting a stronger-than-expected 12% rise in annual pre-tax profits, showing resilience even as interest rates ease and the sector faces continued regulatory and consumer pressure. Lloyds posted around £6.7bn in 2025 pre-tax profit, ahead of analyst expectations, helped by income growth and lower-than-feared impairment charges.
Even with nearly £1bn in costs tied to compensation for mis-sold motor finance, the bank raised its profitability targets, now expecting return on tangible equity above 16% in 2026. It also announced a £1.75bn share buyback, underlining management confidence in its balance sheet and earnings trajectory.
A notable angle in the update was Lloyds’ emphasis on AI as a driver of future efficiency and profitability. The bank expects generative AI to contribute over £100m in incremental profit in 2026, positioning automation and smarter operations as central to its next growth phase