White House To Host Crypto And Banking Leaders In Push To Break Regulatory Deadlock
Analysis
Price Impact
HighThe white house meeting between banking and crypto leaders aims to resolve the regulatory deadlock around the clarity act. this legislation, especially concerning stablecoin rewards, has significant implications for market structure and firm operations, potentially setting a comprehensive federal framework for digital assets.
Trustworthiness
HighThe source explicitly states adherence to strict editorial policies, focusing on accuracy, relevance, and impartiality, created by industry experts, and upholding the highest standards in reporting.
Price Direction
NeutralWhile the *intent* to resolve regulatory deadlock is generally a long-term positive for market clarity, the immediate outcome of this specific meeting is uncertain. disagreements between banks and crypto firms over stablecoin rewards could lead to further impasse or a compromise with varying market reactions. therefore, the short-term direction is neutral until more details about the meeting's progress emerge.
Time Effect
LongRegulatory changes and the implementation of new legislative frameworks like the clarity act typically unfold over an extended period. the full impact on market structure, business models, and investor confidence will be realized months to years down the line.
Original Article:
Article Content:
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and publishing How Our News is Made Strict editorial policy that focuses on accuracy, relevance, and impartiality Ad discliamer Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio. The White House is set to bring together senior figures from the banking and crypto industries on Monday in an effort to break the deadlock over the crypto market structure bill, namely the CLARITY Act, according to a Reuters report. The planned meeting comes as progress on the bill has stalled amid growing tensions between the two sectors over how digital assets should be regulated. White House Crypto Council To Lead Talks People familiar with the matter said the meeting will be organized by the White House’s crypto council and will include executives from several industry trade groups. Related Reading Bitcoin Price Braces For FOMC Volatility As History Shows Major Post‑Fed Sell‑Offs 12 hours ago Discussions are expected to focus on one of the most contentious aspects of the legislation: whether and how crypto firms should be allowed to offer interest or other rewards on customer holdings of stablecoins. The anticipated market structure legislation has been under consideration in the Senate for several months. It is intended to establish a comprehensive federal framework for regulating digital assets following the passage of the GENIUS Act last July. Stablecoin Rewards Clash With Bank Stability Fears The House of Representatives passed its version of the bill in July, but progress in the Senate has been slower. Earlier this month, the Senate Banking Committee was scheduled to debate and vote on the measure. However, the markup was postponed after cryptocurrency exchange Coinbase (COIN) withdrew its support for the bill and criticized various elements of it, including stablecoin rewards. Crypto representatives argue that offering rewards such as interest is essential to attracting and retaining customers. Related Reading Crypto Funds Funneled To Money Launderers Hit $82 Billion, According To Chainalysis 22 hours ago Banks, on the other hand, have raised alarms that allowing crypto platforms to pay yield on stablecoins could draw deposits away from insured lenders. Since deposits are the primary source of funding for most banks, industry representatives warn that a significant outflow could pose risks to financial stability. The 1-D chart shows the total crypto market cap surging toward $3 trillion on Wednesday. Source: TOTAL on TradingView.com Featured image from OpenArt, chart from TradingView.com