The U.S. CLARITY Act is yet again at the center of discussions among regulators and industry experts, with the White House set to hold talks in order to reach a middle ground.
The White House is set to bring together executives from Coinbase, major banks, and crypto lobbying groups next week, in an effort to break the deadlock over the stalled CLARITY Act.
The act, which should have seen enactment by the end of 2025, is a key bill aimed at defining U.S. crypto market structure.
First reported by Reuters, the meeting will be hosted by the administration’s crypto council and will include leaders from several industry trade groups.
According to sources familiar with the discussions, talks will center on how the bill treats interest and rewards earned on dollar-pegged stablecoins held by customers, one of the most contentious issues.
Despite nearly two weeks of negotiations, no compromise has been reached so far. Insiders warned that if an agreement isn’t reached by Monday, the meeting could be postponed further.
Coinbase gets special seat at CLARITY Act discussion table
Bloomberg reported on Thursday that a Coinbase representative will also attend the White House gathering. The meeting comes after progress on the CLARITY Act stalled, following Coinbase CEO Brian Armstrong’s decision to publicly withdraw support for the draft legislation in mid-January.
Armstrong’s move highlighted growing industry concerns over the bill’s current framework and added pressure on policymakers to revisit key provisions before advancing the crypto market structure proposal.
CALRITY ACT: What has happened so far?
At present, the Senate Agriculture Committee has released its own version of the crypto market structure bill, adding another layer to the ongoing legislative process.
The committee, however, had planned to move forward with a markup this week, but the session has now been rescheduled for Thursday after a winter storm disrupted activity in Washington, D.C.
If the Crypto Market Structure Bill sees the day of light to become a law, the SEC and CFTC will become important regulators of the U.S. cryptocurrency market. By closing a regulatory gap, the law aims to provide certainty in the cryptocurrency sector.
It will create strict consumer protection standards, define the parameters of intermediary regulation, and make the classification of digital assets more clear. Both the Senate Banking and Agriculture committees have not yet taken up a mark up on the legislation.
The Senate Banking Committee delayed its markup session on the measure after Coinbase rejected the draft laws. During this time, regulators would have examined the bill and suggested changes if necessary.
It is not yet known when the Banking Committee will mark up the Clarity Act. The Senate Banking Committee sets SEC rules, whereas the Senate Agriculture Committee is in charge of the Commodity Futures Trading Commission (CFTC).
Because of the dual control, getting both committees’ approval is crucial to creating a legal framework that satisfies industry standards and complies with CFTC and SEC regulations.