The White House is likely to hold a third meeting with crypto and banking industry leaders this week in a bid to reach a deal regarding the ban on stablecoin yield in the crypto bill. As these industry leaders stall on reaching a deal, crypto traders are beginning to bet on the possibility that this crypto market bill will not pass this year.
White House Likely To Hold Another CLARITY Act Meeting This Week
Patrick Witt, the White House Crypto Council’s executive director, mentioned during an interview with Yahoo Finance that another meeting with these industry leaders could happen as soon as this week. This follows last week’s meeting, where both parties failed to reach a compromise on the stablecoin yield provision, which remains the major issue delaying a markup of the crypto bill.
Notably, the bank representatives maintained their stance on a broad ban on crypto service providers distributing stablecoin yields to customers. In response to the banks’ ‘Yield and Interest Prohibition Principles’ document, crypto group Digital Chamber released their set of principles in which they defended the exemptions to the ban on distributing stablecoin yields in the current CLARITY Act draft.
They noted that the absence of those exemptions could undermine the dollar’s dominance in the crypto space. According to Crypto In America, a source close to the Senate Banking Committee described Digital Chamber’s principles as “constructive” but cautioned that some of the proposals may be too broad to win the banks’ support.
It is worth noting that the White House has already set a March deadline for crypto and banking industry leaders to reach a deal on the stablecoin yield provision. Crypto stakeholders such as Coinbase’s CEO Brian Armstrong believe that the ban on stablecoin yields will mark a setback for crypto innovation in the U.S.
A 55% Chance Of Passing This Year
Crypto traders are lowering expectations that the CLARITY Act will pass this year as industry leaders stall on a deal. Polymarket data show a 55% chance of the crypto market bill passing this year, down from a high of 72% in January.
Despite the setback over the stablecoin yield provision, Senator Cynthia Lummis has assured that passing the crypto bill remains a priority. The Senator revealed that Senate Majority Leader John Thune has pledged to include the crypto bill on the schedule for a floor debate.
Meanwhile, U.S. Treasury Secretary Scott Bessent urged Congress to pass the CLARITY Act, warning that it was critical for the U.S. to maintain its lead in the crypto space over countries including China.
More recently, the Treasury Secretary stated that Congress should pass the crypto market bill by Spring, or risk losing a key political window, as Democrats could retake Congress following the midterm elections. He added that some clarity on the bill would provide great comfort to the crypto market.