The White House Crypto Council is hosting a pivotal meeting as Trump administration officials join banking executives and leaders from cryptocurrency firms in an effort to break the legislative deadlock surrounding crypto market structure. At the center of these negotiations is the Digital Asset Market Clarity Act (CLARITY Act), which has been stalled in the Senate for months, with a crucial Banking Committee vote also postponed.
As the talks progress, longstanding divisions between traditional finance (TradFi) and the crypto industry over stablecoin yield resurface. The outcome of these discussions could shape how banks expand their crypto services and how businesses structure their operations in the US market.
Negotiations Resume
Following a period marked by regulatory gridlock and institutional hesitation, the Trump administration has decided to restart consultations on the CLARITY Act. Chaired by the White House Crypto Council, the meeting brings together industry trade groups to focus on how the bill addresses interest and other rewards offered by dollar-pegged stablecoins. According to sources familiar with the matter, these negotiations aim to resolve the impasse over crypto market structure legislation.
The CLARITY Act is a proposed framework for crypto market structure designed to clarify how digital assets are regulated in the US, including the division of oversight between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). The bill has languished in the Senate for months, and earlier this month, a scheduled Banking Committee vote was postponed due to concerns from lawmakers and industry groups over stablecoin interest provisions.
Core Provisions
At the heart of the CLARITY Act is the concept of "maturity." Rather than focusing on whether a particular cryptocurrency qualifies as a security, the bill shifts the emphasis to the degree of decentralization. Under its provisions, the value of digital commodities associated with mature blockchains should "primarily derive from the use and operation of the blockchain." This means that the level of decentralization will ultimately determine whether the SEC or CFTC holds jurisdiction.
Tokens from more mature, fully decentralized blockchain networks would be classified as "digital commodities" and fall under CFTC oversight. In contrast, tokens from early-stage, centrally controlled projects would be designated as "investment contract assets" and regulated by the SEC.
The bill also introduces a certification mechanism for "mature blockchain systems." Projects can transition from securities to commodities regulation by demonstrating compliance with three criteria: decentralized control, open-source code, and automated operation.
Diverging Interests
Progress on the CLARITY Act has been hampered by a contentious issue: whether third parties should be allowed to offer yields on stablecoins.
The GENIUS Act, passed in July 2025, prohibits stablecoin issuers from paying interest but leaves a gap regarding whether exchanges or other intermediaries can offer rewards. This ambiguity has heightened tensions between crypto companies and traditional banks.
For months, banking lobbyists have urged Congress to ban third-party stablecoin yields, arguing that such products could trigger deposit outflows and undermine the banking system. On January 15, 2026, Bank of America CEO Brian Moynihan warned that interest-bearing stablecoins could siphon off as much as $6 trillion from US banks, potentially restricting lending and driving up borrowing costs.
Industry Response
The crypto industry’s reaction to the CLARITY Act has been mixed. On July 7, 2025, Coinbase’s nonprofit advocacy arm, Stand With Crypto, joined 65 other crypto organizations in sending a letter to Congress urging swift passage of the bill. However, not all companies are on board. On January 14, 2026, Coinbase CEO Brian Armstrong withdrew the company’s support, stating he’d "prefer no bill over a bad bill."
Meanwhile, several prominent firms and advocacy groups—including Coin Center, a16z, the Chamber of Digital Commerce, Kraken, and Ripple—have voiced support for the Senate proposal.
On the TradFi side, former CFTC Chair Rostin Behnam agreed that current federal law has regulatory gaps and called on Congress to enact "targeted legislation" to address them.
Market Connections
Against the backdrop of US regulatory maneuvering, the cryptocurrency market is showing notable resilience. According to Gate market data, as of January 29, 2026, the Bitcoin price stood at $87,818.6, with a market cap of $1.76T, representing 56.29% of market share and a 24-hour price change of -1.51%. Ethereum price was $2,954.4, with a market cap of $353.69B and an 11.30% market share, showing a 24-hour price change of -1.80%.
Some market analysts note that Ethereum’s price remains steady near the closely watched $3,000 mark, with buyers continuing to enter at this level. Technical analysis suggests that, despite short-term downside risks, if prices hold key support, a rebound could target the $3,200 to $3,400 range.
The link between regulatory clarity and market performance is becoming increasingly apparent. When investors can anticipate the regulatory environment, they are more likely to participate in the market—providing momentum for the potential passage of the CLARITY Act.
Global Impact
The Trump administration’s push for the CLARITY Act aligns closely with the US national strategy to become the world’s "crypto capital." On January 25, 2026, the White House unveiled a national strategy aimed at making the US the global hub for crypto, building on President Trump’s "Crypto Golden Age" vision announced in early 2025. The strategy seeks to clarify that non-security spot market oversight falls under the CFTC, streamline banking access, and establish stablecoin rules through the GENIUS Act.
The plan also introduces a DeFi regulatory sandbox, favoring private sector solutions over central bank digital currency issuance, with the goal of maintaining consumer protections while attracting talent and investment.
For global crypto exchanges, a clear regulatory framework means smoother international expansion. Gate, for example, ranks among the top three exchanges worldwide by real trading volume, serving over 48 million users with digital asset trading services across the globe.
The Road Ahead
Debate over the CLARITY Act continues, with stakeholders closely monitoring a legislative process that could shape the future of America’s crypto industry. Despite divisions, most participants agree on the need for some form of regulatory clarity. As Ji Kim, Chair and Acting CEO of the Crypto Innovation Council, put it, the CLARITY Act represents "an important step toward clear crypto rules."
Passage of the bill would mark a major shift in US crypto regulation—from the current enforcement-driven approach to a more comprehensive legislative framework. This change could impact everything from token issuance to exchange operations.
For users of digital asset trading platforms, regulatory clarity promises a safer and more transparent trading environment. Gate, for instance, commits to 100% reserve backing and was among the first to introduce zero-knowledge proof technology to verify asset reserves—measures that align closely with regulators’ demands for transparency.
After the meeting, a representative from the American Bankers Association told reporters in the hallway, "We need a level playing field. Interest-bearing stablecoins could destabilize the entire banking system." Meanwhile, a member of a crypto industry lobbying group insisted, "Innovation driven by technology shouldn’t be stifled by outdated regulations. Stablecoin yields are a natural outcome of market competition."
When asked about the meeting’s outcome at the day’s press briefing, the White House Press Secretary simply stated, "The discussions were constructive, and all parties expressed their concerns." The fate of the CLARITY Act remains uncertain, but one thing is clear: digital assets are no longer a fringe topic in the financial world. Regardless of the final terms, this meeting marks a new stage in the conversation on crypto regulation—banks and crypto companies are finally sitting at the same table, discussing how to move forward together in a rapidly evolving financial landscape.
