The White House will host a meeting between leaders of the crypto industry and traditional banks to break the deadlock over the CLARITY Act. The meeting is scheduled on Monday, February 2nd, where several organizations, including the Blockchain Association, Digital Chamber, and numerous trade associations, will participate.
The primary objective of the meeting will be to negotiate a compromise on stablecoin rewards, which have been continually opposed by the banks. The move highlights the Trump administration’s increasing pro-crypto policies aimed at making America the “crypto capital of the world.”
What is the CLARITY Act?
The Digital Asset Market Clarity (CLARITY) Act is a bill that proposes a defined legislative framework for regulating crypto markets and clarifying authority between the SEC and CFTC. The bill seeks to bring about stronger consumer protections and lighter rules for blockchain developers.
The bill was introduced in the House in June 2025. Although passed by the House, it is currently stuck in the Senate as the Banking Committee’s deliberations have reached a deadlock regarding the stablecoin rewards.
What Happens If CLARITY Passes?
CLARITY will establish a comprehensive federal framework for all cryptocurrencies and associated digital assets. Banks and financial institutions investing in cryptocurrencies played a key role in legitimizing it as a major asset class. SEC’s ETF approval for tokens was also a watershed moment for cryptocurrencies that broke several resistance levels for BTC and ETH.
In short, approval from big institutions and regulatory bodies makes cryptocurrency appear more and more legitimate, which leads to bigger capital inflow. Extreme volatility is often seen as a major drawback of cryptocurrencies. But stablecoins and the GENIUS Act played a key role in the progress towards stability and proper regulation.
A comprehensive federal law that draws clear boundaries between SEC and CFTC oversight over crypto and strong consumer protection clauses will effectively legitimize cryptocurrencies further and integrate them with mainstream finances.
The Deadlock: Banks vs. Crypto
The locus of disagreement between banks and crypto platforms regarding the CLARITY Act is stablecoin rewards. Banks want a complete ban on stablecoin interest, while crypto platforms term the ban as limiting innovation.
Banks cite the U.S. Treasury warning that stablecoin yield may risk $6.6 trillion bank deposits in America. Unregulated crypto can erode 30-35% bank deposits globally, significantly hurting banks’ lending power. This can also lead to an inevitable rise in bank costs, which in effect would hurt communities and industries.
Crypto platforms, on the other hand, want yields to be allowed. Major exchanges like Coinbase argue that yield generates their key revenue and is a critical factor in the business model to attract customers. Coinbase CEO Brian Armstrong had earlier pulled his support for CLARITY, alleging that banks’ lobbying powers are tipping decisions in their favor. He remarked, “No bill is better than a bad bill,” while withdrawing support.
Will the Meeting Yield Clarity?
The Trump administration is highly motivated to clear the deadlock and pass the bill. This pro-crypto stance has its roots in larger policies that aim for rapid economic and technological innovation and U.S dominance in digital assets. Hence, the White House is likely to push for a resolution in the current conflict by finding middle ground between banks and crypto platforms. And a resolution would expedite the CLARITY Act’s movement through committees, the Senate vote, and enactment by mid-2026.
