The White House is hosting a pivotal meeting on February 10th to break the deadlock over the CLARITY Act. The most divisive issue is interest-paying stablecoins, which crypto firms support for innovation but traditional banks warn could drain $6.6 trillion in deposits. The market is showing stress, with total value dropping to $2.36 trillion as investors await the outcome.
Government officials, Wall Street leaders, and crypto founders are meeting at the White House to resolve the long-running impasse over the CLARITY Act. The conflict over interest-paying stablecoins has become the most contentious point in the debate.
Crypto companies argue that offering yield is a natural step toward building a modern financial system. For instance, Coinbase earned $355 million from stablecoins in Q3 2025 alone, seeing yield as critical.
Traditional banks, however, see this as a serious threat to their stability. They 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. This 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. Banks warn that even restricted access could open the door too quickly.
History shows that policy delays have often triggered sharp market reactions. After a February 2nd meeting, the total crypto market’s value dropped from $2.64 trillion to $2.54 trillion.
Another shock occurred on January 15th when the Senate Banking Committee canceled its vote on the CLARITY Act. The market reacted almost instantly, with crypto prices falling by about 7.5% within minutes.
Conversely, agreements have sparked quick recoveries, as seen with the GENIUS Act signed on July 18, 2025. That legislation pushed many altcoins up by nearly 12% in just one week.
Currently, the market is waiting nervously for the next development. Stress is visible, with an X user stating, “The fight over stablecoin yield is really a fight over who gets to shape the next financial system.”
Fears of a possible ban on stablecoin interest have weakened investor confidence. The total crypto market value fell to $2.36 trillion in a single day, a decline of 1.65%.
Bitcoin has struggled, trading near $69,132. Ethereum appears to be following the same trend, dropping to around $2,040 on the back of high trader anxiety.
Analysts are not calling this a major crash, however. They see investors actively reducing risk and shifting into a more defensive position.
