The White House meeting between crypto and banking executives ended without a clear resolution on stablecoin yield, with banks demanding restrictive parameters and crypto firms pushing for more flexibility. This dispute has stalled the progress of the CLARITY Act, a bill aimed at establishing a regulatory framework for digital assets.
*Key Points:*
- *Stablecoin Yield*: Banks want to restrict stablecoin yield, citing concerns over deposit outflows and systemic risk, while crypto firms argue that such restrictions would stifle innovation and reduce competitiveness.
- *CLARITY Act*: The bill aims to establish a federal framework for digital assets, clarifying regulatory boundaries between agencies like the SEC and CFTC.
- *Next Steps*: Further discussions are expected to address concerns and potentially lead to a compromise, with a deadline set for the end of February.
*Impact on Crypto Market:*
- *Uncertainty*: The lack of clarity on stablecoin yield has triggered short-term price volatility, with the total market cap falling from $2.64 trillion to $2.54 trillion.
- *Regulatory Uncertainty*: The delay in the CLARITY Act's progress has raised concerns about the future of crypto regulation in the US.
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