CLARITY Act Crypto-Bank Showdown Round 3 Scheduled for Thursday Morning; Senator Moreno Predicts April Passage
The White House is gearing up for a critical third round of discussions on Thursday morning to resolve ongoing disputes surrounding the market structure bill linked to the CLARITY Act. This legislative effort aims to create clear regulatory guidelines for the crypto and banking sectors, which have been at odds in recent months.
Senator Bernie Moreno Optimistic on April Passage
Speaking to CNBC, Senator Bernie Moreno expressed optimism about the bill’s progress, suggesting that if negotiators can reach an agreement during these talks, the legislation could move through Congress by April. This deadline aligns with the push from Washington to have a resolution in place by the end of February, underscoring the urgency felt by lawmakers and industry stakeholders alike.
Industry Leaders Signal Progress
The CEO of Coinbase, Brian Armstrong, also weighed in, highlighting significant advancements in the ongoing negotiations. Armstrong described the market structure bill as “making great progress” and forecasted a “win-win-win” outcome that would benefit regulators, financial institutions, and crypto companies.
February Deadline Looms
With a tight timeframe set by officials to finalize an agreement by the end of February, the upcoming White House-hosted meeting is expected to be pivotal. The session will convene a small group comprising representatives from both crypto firms and traditional banks.
Stablecoin Yield Debate Resurfaces
One of the core points of contention remains the treatment of stablecoins, especially regarding their ability to generate yield. The Digital Chamber recently proposed a framework that would permit payment stablecoins to earn yields through a decentralized finance (DeFi) liquidity exemption. While banks have yet to formally endorse this proposal, a banking insider described it as “constructive” but noted that additional clarity on yield protections is necessary before full support can be given.
Crypto Market Reaction and Analysis
As talks continue, cryptocurrency markets have exhibited a rangebound performance. Bitcoin’s price slipped by around 1.1% over the past 24 hours to approximately $66,900, while major altcoins experienced deeper declines. Solana led losses among the top cryptos, dropping more than 4%, and Ethereum fell below the $2,000 mark, down nearly 0.9%, hovering around $1,975. Overall, the crypto market’s total capitalization decreased by 1.4% to approximately $2.37 trillion.
Despite the cautious market response, Polymarket’s prediction market data showed the odds of the CLARITY Act being signed into law in 2026 have surged dramatically—from 60% one day prior to 90% currently—reflecting growing confidence in a positive legislative outcome.
Aurelie Barthere, principal research analyst at blockchain analytics firm Nansen, offered a tempered forecast regarding the potential market impact. In an email to Stocktwits, she noted that even if the Act propels Bitcoin’s price above $70,000, such gains might be short-lived unless broader market sentiment also improves.
What’s Next
The industry awaits the outcome of Thursday’s high-stakes negotiation session, which could pave the way for regulatory certainty that many believe is essential for the cryptocurrency sector’s sustained growth. Should the CLARITY Act advance as anticipated, market participants are hopeful it will provide a foundation for healthier cooperation between crypto innovators and traditional financial institutions.
Stay tuned for updates on this developing story and comprehensive coverage of crypto regulation, market trends, and legislative developments.
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