White House to Host Emergency Crypto Meeting: Details
Analysis
Price Impact
HighAn emergency white house meeting to resolve a legislative deadlock on the digital asset market clarity act, specifically concerning a potential ban on stablecoin yield, has significant implications for the entire crypto market, especially stablecoins and defi.
Trustworthiness
HighThe news reports on an official white house meeting, citing reuters, indicating a credible and high-level discussion that will directly affect crypto policy.
Price Direction
BearishA potential ban on stablecoin yield, as lobbied by traditional banks, would significantly reduce the utility and attractiveness of stablecoins and related decentralized finance (defi) protocols. this regulatory pressure could lead to capital outflow from the crypto market and deter new investment, creating a bearish sentiment. the internal industry disagreement (coinbase vs. ripple) further highlights uncertainty.
Time Effect
ShortThe meeting itself and any immediate outcomes or leaked details could trigger swift market reactions as investors gauge the regulatory future for stablecoins and the broader crypto ecosystem. the uncertainty leading up to and during the meeting will create volatility.
Original Article:
Article Content:
Cover image via U.Today Read U.TODAY on Google News The stand-off Coinbase's withdrawal Advertisement The White House has called for an emergency summit on Monday to salvage the Digital Asset Market CLARITY Act, which has hit a significant roadblock in the Senate. The impasse centers on stablecoin yield, according to a recent report by Reuters. The stand-off The summit, which is hosted by the White House's crypto council, aims to resolve a legislative deadlock that occurred after the Senate Banking Committee postponed a critical markup session on January 14. HOT Stories White House to Host Emergency Crypto Meeting: Details Breaking: Fidelity Lauching Ripple USD Competitor Morning Crypto Report: XRP Delivers Ultra-Rare $0 Anomaly for Bulls, 429% Bitcoin Price Rise Everyone Forgot About, Shiba Inu (SHIB) Nears Legendary February "Win Streak": What to Expect? Ripple Exec: XRP Will Remain 'At the Heart' of Company Vision The primary point of contention is a proposed amendment that would ban crypto platforms and third-party exchanges from paying "interest" or "rewards" to those who hold stablecoins. Advertisement You Might Also Like Wed, 01/21/2026 - 05:46 Ripple President Makes Major Stablecoin Prediction By Alex Dovbnya The amendment has been heavily lobbied for by the American Bankers Association (ABA) Traditional lenders argue that allowing stablecoin yield triggers a massive exodus of capital from traditional savings accounts. Advertisement The crypto industry, led by Coinbase, views these rewards as essential for customer utility. Coinbase's withdrawal As reported by U.Today, Coinbase recently withdrew its support for the CLARITY Act. This caused a rift within the industry, with Ripple arguing that a not-so-good bill would be better than no bill. Coinbase's move to abruptly drop its support reportedly angered the White House.