Trump Administration Seeks Breakthrough in Crypto Regulatory Deadlock

The White House has convened an emergency meeting with major banks and cryptocurrency firms to resolve the impasse over the CLARITY Act, legislation that WOULD establish clear regulatory boundaries between the SEC and CFTC for digital assets. The stalemate centers on disputes around stablecoin yield mechanisms, with traditional banks warning of potential $6 trillion in deposit flight if third-party rewards aren't banned.

Coinbase CEO Brian Armstrong's sudden withdrawal of support has added complexity, calling the bill 'anticompetitive' while Ripple, Kraken, and other crypto natives push for passage. The TRUMP administration's intervention signals urgency, with the President himself hinting at imminent action during his World Economic Forum remarks: 'That's clarity. That's commitment.'

Market observers note XRP and other payment-focused tokens stand to benefit most from regulatory certainty. The outcome could determine whether stablecoins like USDT and USDC remain banking system allies or become parallel financial infrastructure.