.png){kind=logo}
The White House will meet banking and cryptocurrency executives on Monday to resolve disputes blocking progress on the CLARITY Act, as prediction markets now place its passage odds at 57%. The meeting will bring together banks and crypto firms whose disagreements have stalled U.S. crypto legislation for months, despite growing pressure from the current administration to move quickly.
The White House crypto council will host the talks, according to Reuters, which cited people familiar with the matter and confirmed the discussions will focus on stablecoin rewards and market structure rules.
Washington views the legislation as central to providing legal certainty for crypto businesses, while industry leaders warn delays could weaken momentum during the current crypto-friendly administration.
At the center of this debate stands one question: Can lawmakers bridge the divide between banks and crypto firms before legislative support erodes further?
The meeting will examine how cryptocurrency companies manage the interest and reward systems that relate to customer-held dollar-backed stablecoins. Crypto companies have opposed restrictions on stablecoin rewards because they believe that vague regulations prevent technological development and reduce American strength in digital finance markets.
Coinbase stopped backing the CLARITY Act because it found the stablecoin yield prohibition and the tokenized equity issues to be unresolved. Banking groups, in contrast, have warned that allowing stablecoin rewards could shift deposits away from traditional banks toward crypto platforms.
A Standard Chartered report projected that stablecoins could attract about $500 billion in U.S. bank deposits by 2028, intensifying concerns among financial institutions. In 2025, the United States passed the GENIUS Act, which barred stablecoin issuers from paying interest, yet banks argue gaps remain that allow third parties to offer yields.
The CLARITY Act has remained under Senate review for months, despite years of lobbying by the crypto industry for clearer market rules. Over the summer, the House Financial Services Committee, the House Agriculture Committee, and the full House passed their version of the bill with bipartisan support.
Since then, Senate negotiations have faltered, as both the Senate Agriculture Committee and the Senate Banking Committee must amend and advance related legislation. The Senate Banking Committee cancelled a planned January 15 hearing after Coinbase pulled its support, citing unresolved issues around stablecoin rewards.
Meanwhile, the Senate Agriculture Committee is scheduled to hold its hearing on Thursday, although the proposed bill text released last week lacked Democratic backing. As a result, traders on Polymarket now assign only a 57% chance that the CLARITY Act will become law in 2026, down from earlier expectations.
The Trump administration has stepped in to help banking groups and crypto firms reach a compromise and revive stalled negotiations. Patrick Witt, executive director of the President’s Council of Advisors for Digital Assets, warned last week that delays risk losing momentum under the current administration.
Industry leaders argue that passing the bill would provide long-awaited legal certainty for crypto operations across the United States. Bitwise Chief Investment Officer Matt Hougan cautioned that a broader crypto bull market may not materialize without passage of the CLARITY Act.
Hougan also warned that failure to act now could force the next administration to restart the entire legislative process from the beginning. The Senate Agriculture Committee is set to hold a markup session for its related crypto bill, with top Democratic senators signaling no plans to block progress.
Read More: White House Warns Crypto Bill Delays Could Invite Tougher Future Laws
The White House will host talks between banks and crypto firms to break a stalemate over the CLARITY Act as passage odds fall to 57%. Disputes over stablecoin rewards and Senate delays continue to slow progress. The outcome of these talks may determine whether U.S. crypto regulation advances under the current administration.
