The White House brought together the giant names of the finance world for the third time today in order to overcome the “yield” crisis, which is the biggest obstacle to the CLARITY Act. Cryptocurrency leaders such as Coinbase, Ripple and Andreessen Horowitz and banking representatives are looking for a consensus that will determine the fate of digital dollars by March 1. While it was observed that the differences of opinion between the parties decreased at the meeting, hopes for the legalization process were met with a record probability of 83 percent in the markets.
The Search for Compromise in the War of Yields and the Critical Calendar
At the center of the tension between the cryptocurrency industry and traditional banking is the issue of whether stablecoins such as USDC will provide returns to the user. While banks are concerned that digital dollars offering interest-like returns will accelerate deposit outflows; Technology companies argue that this feature is the lifeblood of innovation. The talks, which Coinbase Chief Legal Officer Paul Grewal described as “constructive and collaborative,” were hosted by Patrick Witt.
Although no definitive signature has been made yet, the tone of the participants shows that the parties are approaching to meet at the halfway point. According to prominent journalists such as Eleanor Terrett, this summit, where names such as Stuart Alderoty and Miles Jennings were also present, aims to carry the bipartisan support that the CLARITY Act received from the House of Representatives last year to the Senate wing. This regulation, which has become the number one policy priority for the crypto world, aims to end uncertainty in the markets.
The first day of March is considered a turning point for the industry. Ripple CEO Brad Garlinghouse is up to 90 percent optimistic that the legislation will make progress in early March and become law by April. The intense pressure exerted by the White House to speed up the process is forcing both banks and crypto asset issuers to take a more flexible stance.
Senate Obstacle and Increased Expectations in the Markets
In order for the legislation to become law, the Senate Banking Committee must first hold a hearing and then receive the support of Democrats in the General Assembly. Although the Senate Agriculture Committee previously approved its version along partisan lines, the real deciding factor will be the extent to which the banks’ objections will be assuaged. The fact that the Democratic coalition has not yet been fully convinced further increases the pressure on the negotiators for March 1.
The rapid increase in the likelihood of the law being passed on prediction platforms such as Polymarket proves that investors expect a positive outcome from this dialogue. Executives such as Brian Armstrong emphasize that clear rules for cryptocurrencies are essential for the financial future of the United States, stating that both industries are focused on a balanced outcome. As negotiations continue, the regulatory framework of cryptocurrencies is becoming clearer every day.
Restrictions or flexibilities introduced for stablecoin issuers have the power to directly affect not only the US domestic market but also global cryptocurrency standards. For this reason, the parties are sweating over a formula that will protect both safety and profitability in the final corner. The final decision from the negotiating table will determine whether cryptocurrencies will be integrated into the mainstream financial system.
