After months of legislative limbo, Washington is showing rare momentum on crypto policy. A high-stakes standoff between Wall Street banks and digital asset firms over stablecoin rules appears to be entering its final chapter, with industry leaders now betting on passage of the CLARITY Act by this spring .
Senator Bernie Moreno predicted in a CNBC interview that the market structure bill could clear Congress as early as April, provided negotiators reach an agreement by the end-of-February deadline set by the White House . Ripple CEO Brad Garlinghouse upped the ante, giving the legislation an 80% chance of enactment by the end of April, urging the industry to accept an imperfect bill rather than cling to regulatory chaos . Prediction markets have taken note: Polymarket odds briefly spiked to 90% before settling near 72% .
The Core Conflict: Yield
At the heart of the delay is a fierce debate over stablecoin rewards. Banks argue that yield-bearing stablecoins would trigger a deposit exodus, threatening traditional lending . In a recent White House meeting, bankers circulated a document demanding a complete ban on any form of stablecoin yield.
The crypto industry, led by the Digital Chamber, fired back with a counter-proposal allowing rewards generated through decentralized finance (DeFi) liquidity, framing it as a compromise to keep innovation onshore . While banks have yet to endorse the plan, sources describe the talks as "constructive," signaling a possible thaw .
White House Crypto Czar David Sacks has urged both sides to find common ground, envisioning a future where banking and crypto merge into a unified digital assets industry . Coinbase CEO Brian Armstrong, who previously withdrew support for the bill over these very issues, now sees a "path forward" toward a "win-win-win" outcome for consumers, banks, and crypto firms .
As the February deadline looms and pressure mounts ahead of the midterms, the countdown to clarity is officially on .#WhenWillCLARITYActPass 
