{"id":17208,"date":"2026-02-03T04:15:15","date_gmt":"2026-02-03T04:15:15","guid":{"rendered":"https:\/\/diyhaven858.wasmer.app\/index.php\/wall-street-banks-crypto-leaders-set-to-meet-in-washington-with-landmark-clarity-act-hanging-in-the-balance\/"},"modified":"2026-02-03T04:15:15","modified_gmt":"2026-02-03T04:15:15","slug":"wall-street-banks-crypto-leaders-set-to-meet-in-washington-with-landmark-clarity-act-hanging-in-the-balance","status":"publish","type":"post","link":"https:\/\/diyhaven858.wasmer.app\/index.php\/wall-street-banks-crypto-leaders-set-to-meet-in-washington-with-landmark-clarity-act-hanging-in-the-balance\/","title":{"rendered":"Wall Street banks, crypto leaders set to meet in Washington with landmark Clarity Act hanging in the balance"},"content":{"rendered":"
\n<\/p>\n
\n
\n
The final piece of legislation needed to meld the crypto world with mainstream finance is at risk of getting derailed.<\/p>\n
At the center of the D.C. turmoil is a standoff that pits major crypto exchange Coinbase Global (COIN) against the US banking industry. To settle the matter, the White House has stepped in to mediate the fight.<\/p>\n
On Monday, White House crypto czar David Sacks will host banking and crypto trade groups, along with Coinbase, for what could evolve into multiple rounds of policy negotiations, according to people familiar with the matter.<\/p>\n
The need for the White House to step in comes after months of building tension over whether crypto platforms should be able to pay customers “yield,” or interest on their stablecoin balances.<\/p>\n
\u201cThis is about creating a foundational regulatory framework for crypto in the United States,\u201d said Cody Carbone, CEO of crypto advocacy group The Digital Chamber, which will be attending the Monday meeting. But attention on “stablecoin rewards have now taken over this entire bill,\u201d Carbone added.<\/p>\n
The forthcoming bill, which is called the Clarity Act, aims to lay out firm rules for which federal agency oversees what portions of the crypto markets. This includes a range of crypto assets, decentralized finance products, and tokens representing real-world assets like stocks and bonds.<\/p>\n
Setting those rules would give the crypto world permanent legitimacy in the eyes of mainstream finance. It would also cement the ability for banks to delve deeper into crypto.<\/p>\n
Last Thursday, the Senate Agriculture committee passed a portion of the bill by a party-line vote of 12 to 11. Such a narrow win bodes poorly for further progress, according to TD Cowen policy analyst Jaret Seiberg. Without more support from Democrat lawmakers, \u201cthis is not a sustainable strategy,\u201d Seiberg wrote to clients. By his estimates, the bill needs 10 Democrats voting in support.<\/p>\n\n
\n
<\/div>\n<\/div>Coinbase CEO Brian Armstrong speaks onstage during the 2025 New York Times Dealbook Summit at Jazz at Lincoln Center on Dec. 3, 2025, in New York City. (Michael M. Santiago\/Getty Images) \u00b7<\/span> Michael M. Santiago via Getty Images<\/span><\/figcaption><\/figure>\n
After lawmakers met with major bank CEOs in December, the Senate Banking Committee pushed back its date for a markup hearing of the bill to January. The Congressional Committee has since postponed the hearing twice, with the latest decision coming hours after Coinbase CEO Brian Armstrong rejected the bill\u2019s most recent draft due to some key compromises.<\/p>\n
\u201cThere are too many issues,\u201d Armstrong wrote in a post on X on Jan. 14, citing amendments that \u201cwould kill rewards on stablecoins\u201d along with other issues.<\/p>\n
Days later, when Armstrong reached the World Economic Forum in Davos, Switzerland, he posted a video on X sharing some of his goals for the conference. These included continuing work on the market structure legislation and plans to “meet with some of the bank CEOs to figure out how to make this a win-win.”<\/p>\n<\/p><\/div>\n