Inside the White House, a high-pressure struggle is reaching a turning point as government officials, Wall Street leaders, and crypto founders meet on 10 February to resolve the long-running deadlock over the CLARITY Act.
At the center of the conflict is the issue of interest-paying stablecoins, which has become the most divisive topic in the debate.
Crypto companies argue that offering yield is a natural step towards building a modern and efficient financial system that benefits everyday users and supports innovation. For instance, companies like Coinbase, which have earned $355 million from stablecoins in Q3 2025 alone, see yield as critical to their business.
Traditional banks, however, see this as a serious threat and warn that $6.6 trillion from deposits could be drained from savings accounts.
Another major issue is the Federal Reserve’s proposed “skinny” master account system, which would give some crypto firms limited access to central bank services under strict conditions.
Crypto companies say the access is too limited to support real growth and stability. Banks, meanwhile, warn that even restricted access could open the door too quickly.
As a result, the proposal fails to satisfy either side, making compromise difficult.
History shows that policy delays have often triggered sharp market reactions. Last week itself, after the 02 February meeting, the total crypto market’s value dropped from $2.64 trillion to $2.54 trillion in a very short time.
Another major shock followed on 15 January when the Senate Banking Committee suddenly canceled its vote on the CLARITY Act.
Needless to say, the market reacted almost instantly, with crypto prices falling by about 7.5% within minutes and wiping out billions of dollars in value.
On the other hand, when lawmakers reach an agreement, the market also recovers quickly. A strong example is the GENIUS Act, signed on 18 July 2025. It sparked a bullish rally and pushed many altcoins up by nearly 12% in just one week.
At present, the market is once again waiting to see what happens next. Even before the meeting concludes, stress is already visible across the crypto market.
The sentiment was well reflected by an X user who said,
Fears of a possible ban on stablecoin interest have weakened investor confidence too. As a result, the total crypto market value fell to $2.36 trillion in a single day – A decline of 1.65%.
Bitcoin [BTC] has also struggled on the charts, trading near $69,132 at press time. Ethereum [ETH] seems to be following the same trend too, dropping to around $2,040 on the back of high traders’ anxiety.
And yet, despite the recent bouts of depreciation, analysts are not calling this a major crash. Instead, they see investors actively reducing risk and shifting into a more defensive position
