Crypto Chaos: Will the CLARITY Act Save Us or Send Us Spiraling?

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So here we are, folks. The Trump Administration is still holding onto hope like a dog with a bone, convinced that the CLARITY Act-a bill as clear as mud-will somehow come to fruition before the November midterms. Because nothing says “responsible governance” quite like rushing through legislation for a market that resembles a toddler on a sugar high.

In a recent chat with Yahoo Finance, Patrick Witt, the executive director for the U.S. President’s Council of Advisors for Digital Assets (a title that sounds more like a bad reality show than an actual job), expressed his optimism. “Even if we get the CLARITY Act out of the Senate Banking Committee,” he mused, “it needs to be reconciled with the Senate Agriculture Committee’s portion.” Ah yes, because what better way to address cryptocurrency than by mixing it in with corn and soybeans?

“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.”

Of course, he also pointed out that the elusive stablecoin yield is the pesky little gremlin standing in the way of progress. Who knew that financial clarity could be so complicated? It’s almost as if they’re trying to solve a Rubik’s cube while blindfolded.

But fear not! Witt insists that getting the bill across the finish line is paramount, 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?

Now, let’s talk about meetings. The White House, under Witt’s leadership, has already hosted two meetings to negotiate a stablecoin yield compromise between crypto enthusiasts and traditional finance folk. Picture a bunch of bankers in suits squaring off against hoodie-clad techies in a game of “who can look less comfortable.”

While the first two meetings didn’t exactly yield any golden eggs, last week’s gathering apparently made some headway-at least according to Witt. Some crypto bigwigs, including Ripple’s CLO, deemed it a step towards “compromise,” which is bureaucratic code for “let’s just keep talking until we can all go home.”

Another meeting might be on the horizon, with the banking industry laying down guidelines for the stablecoin deal, such as ensuring bank deposits are safe. You know, little details like that. Meanwhile, The Digital Chamber (TDC) decided to throw their hat in the ring with their own set of ‘principles’ for the negotiation. Apparently, they’re very concerned about preserving the U.S. dollar’s dominance-because who doesn’t love a little currency patriotism?

Assessing CLARITY Act passage odds

So, will next week’s negotiations lead to a miracle? When pressed about the bill’s chances of passing by March or Q2, Witt replied with a vague optimism that suggested he’d rather be anywhere else. He seemed to think that it might happen before the political circus of the midterm season kicks off. Because, clearly, nothing boosts market sentiment like a government bill that’s still stuck in limbo.

Even U.S. Treasury Secretary Scott Bessent chimed in, claiming the bill’s momentum would provide ‘great comfort to the crypto market.’ Because nothing says “comfort” like regulatory uncertainty. Meanwhile, Kalshi bettors were only giving a 36% chance of the bill’s passage by June and a mere 22% by March. So, the market isn’t exactly holding its breath.

Final Summary

  • Patrick Witt, Trump’s crypto advisor, announced yet another gathering next week to hammer out a stablecoin yield deal. Hold onto your hats!
  • The market currently places only a 36% chance of the bill’s passage by June. So, you might want to temper those expectations.

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2026-02-14 14:25