The Donald Trump Administration remains committed and hopeful that the crypto market structure bill, the CLARITY Act, could be passed into law before the November midterm elections.
In a recent interview with Yahoo Finance, Patrick Witt, the executive director for the U.S. President’s Council of Advisors for Digital Assets, said,
“Even if we get the CLARITY Act out of the Senate Banking Committee, it needs to be reconciled with the Senate Agriculture Committee’s portion.
He continued,
“Ultimately, there’ll be a cloture vote and a Senate floor passage vote; that’s all it takes time. I believe we’ll get this done.”
However, he acknowledged the stablecoin yield as the key sticking issue derailing the bill’s progress.
But Witt reiterated the importance of getting the bill to the finish line, adding,
“There are trillions of dollars in institutional capital on the sidelines waiting to get into this space. Regulatory clarity is the unlock.”
Will the third stablecoin yield meeting be fruitful?
Worth pointing out that White House, led by Witt, has held two meetings to broker a stablecoin yield compromise between the crypto and traditional finance industries.
Although none led to a deal, last week’s meeting broke some ground, according to Witt. In fact, some crypto leaders, including Ripple’s CLO, viewed it as a positive progress for a potential “compromise.”
There could be another meeting next week to iron out some of the pending issues, Witt noted. During last week’s negotiations, the banking industry enlisted principles for the stablecoin deal, including the safety of bank deposits.
In a rejoinder, The Digital Chamber (TDC), one of the crypto trade unions involved in the negotiations, released its version of ‘principles’ for the stablecoin yield deal.
TDC listed preservation of the U.S. dollar’s dominance and data-dependent frameworks to verify the impact of stablecoins on bank deposits, amongst others, as the principles.
Assessing CLARITY Act passage odds
It’s unclear whether next week’s round of negotiations will help reach a compromise. When asked whether the bill would be passed by March or Q2, Witt said it could be done before the political season for the midterms begins.
There’s no doubt the bill’s progress could boost the market sentiment. Even the U.S. Treasury Secretary Scott Bessent said the bill’s positive momentum would give ‘great comfort to the crypto market.’ He urged stakeholders to push for the bill’s passage by Spring.
Still, Kalshi bettors were only pricing a 36% chance of the bill’s passage by June and a 22% chance by March. Put differently, the market had not priced in the possibility that the bill would become law this year.
Final Summary
- Trump’s crypto advisor, Patrick Witt, said there will be another meeting next week to reach a deal on the stablecoin yield.
- The market was pricing only a 36% chance of the bill’s passage by June.
