The White House is expected to meet with crypto companies and banks on February 2nd to seek a "compromise" on stablecoin yields, aiming to move the CLARITY Act, a bill designed to restructure the crypto market, through a more comprehensive resolution.
The debate over stablecoin yields has slowed the bill's progress and pitted the parties against each other. The White House's latest move is XEM as a signal to get the issue back on track, amid the risk of further delays due to political schedules and other policy priorities.
- The White House will meet with banks and crypto businesses on February 2nd to seek a compromise on stablecoin yields, a key sticking point in the CLARITY Act.
- The CLARITY Act stalled after Coinbase withdrew its support due to several sticking points, including a ban on stablecoin rewards and issues surrounding Tokenize securities.
- Super PAC Fairshake announced a $193 million budget ahead of the November midterm elections, demonstrating the growing political influence of the crypto industry.
The White House is pushing for a compromise to save the Clarity Act.
The White House is reportedly pushing for a “compromise” between banks and crypto businesses on stablecoin yields to bring the CLARITY Act closer to passage.
According to Reuters , the meeting is scheduled for February 2nd, with the goal of resolving disagreements between the two blocs. The focus is on "stablecoin yields," a factor that has caused conflict between the two sides and slowed the progress of the bill.
The CLARITY Act hit a snag in mid-January after Coinbase withdrew its support, citing “too many issues.” Points raised included a direct ban on stablecoin rewards and Tokenize securities.
As a result, the planned vote on the bill in the Senate Banking Committee was postponed. Since then, tensions between crypto businesses and banks have continued to escalate, making the legislative path even more uncertain.
The information also indicates that the White House is unhappy with this development and has called on Coinbase to return to the negotiating table. If true, this would be a sign that the White House wants to bring together stakeholders to restore policy momentum.
The main obstacle to the bill is stablecoin yields.
Stablecoin yields are a hot topic because they directly relate to how benefits are distributed, risk management, and competition between traditional financial products and those in the crypto ecosystem.
In a context where traditional financial institutions and crypto companies both target the mass market, reward/yield policies can impact cash flow, liquidation , and business models. Therefore, the stalled bill shows that this is not just a technical issue, but also a conflict of interest.
The White House's initiative to host the meeting aimed at "finding a compromise" implies a goal of reducing conflict so that the bill can continue to be XEM . However, the specific content of the compromise and the scope of its application still depend on the negotiation process between the two blocs.
New optimistic signs despite the risk of delays.
The new update has raised expectations that the bill could progress, despite previous concerns that the CLARITY Act would stall.
The Senate Banking Committee was asked to focus more on affordable housing policy, pushing the crypto issue to a lower priority. Simultaneously, snowstorms, the risk of a government shutdown, and the pressure of the November midterm elections also increased the risk of delays.
Nevertheless, this new development is XEM as progress towards a significant "market-structuring" regulatory effort for the industry, given that stablecoin frameworks like the GENIUS Act previously served as legislative milestones for the stablecoin sector.
“We look forward to continuing to work with policymakers in both parties so that Congress can advance legislation that structures sustainable markets and ensures the United States remains the crypto capital of the world.”
– Summer Mersinger, CEO Blockchain Association
Cody Carbone, CEO of The Digital Chamber, also praised the White House for “bringing all parties to the negotiating table.” From a policy perspective, the involvement of industry associations can help narrow differences in interests and increase the viability of the final solution.
Fairshake raised $193 million ahead of the November midterm elections.
The crypto industry is stepping up its lobbying efforts as Super PAC Fairshake announces a $193 million budget to support “crypto-friendly” candidates ahead of the November midterm elections.
Regardless of the outcome of the CLARITY Act, organizations in the industry are still stepping up their political presence. Fairshake announced a $193 million “war chest,” demonstrating a strategy focused on elections and lobbying.
“As the midterm elections approach, united in our mission, Fairshake will continue to oppose anti-crypto politicians and support pro-crypto leaders.”
– Josh Vlasto, Fairshake spokesperson
Since last July, Fairshake has received an additional $74 million, including $25 million from Coinbase, $25 million from Ripple, and $24 million from the VC fund a16z. According to some analysts , Fairshake is now the second-largest Super PAC in terms of funding, reflecting the significant influence of the crypto industry in US politics.
Frequently Asked Questions
What was the goal of the meeting between the White House, banks, and crypto companies on February 2nd?
The goal is to find a "compromise" on stablecoin yields, a point of conflict between banks and crypto businesses, in order to move forward with the CLARITY Act bill.
Why did the CLARITY Act stall in mid-January?
The bill faced setbacks after Coinbase withdrew its support, citing “too many issues,” including a direct ban on stablecoin rewards and concerns related to Tokenize securities.
What is Fairshake and how much money do they have for the election?
Fairshake is a Super PAC that supports candidates XEM crypto-friendly. The organization announced a $193 million budget ahead of the November midterm elections in the US.
