Crypto Markets Wobble Ahead of White House Stablecoin Meeting
As Bitcoin stumbles, reps from crypto and bank trade groups prepare to meet at the White House to hash out disagreements over interest on stablecoins
Welcome to the Monday and Groundhog Day edition of the Crypto In America newsletter!
What you’ll read: Bitcoin falls to below $80K as reps from crypto and bank trade groups are set to meet at the White House to discuss stablecoin yield; SEC delays innovation exemption, plus what we’re watching this week.
It was a rough weekend for many crypto portfolios as Bitcoin fell below $75,000, driven by a stronger dollar, after President Trump nominated potential Fed hawk Kevin Warsh to lead the central bank. Escalating geopolitical tensions between the U.S. and Iran didn’t help either.
All told, the weekend sell-off erased nearly $290 billion in crypto market value. Meanwhile, Punxsutawney Phil, Pennsylvania’s “official state meteorologist,” saw his shadow this morning, signaling six more weeks of winter — though hopefully not six more weeks of frozen crypto gains.
But as is often the case with longtime crypto holders, even the biggest market swings rarely raise their blood pressures.
“The underlying crypto market is fine over time. We are seeing clarity across regulatory, legislative, banking, and accounting pillars, and that clarity will provide stability, which in turn incentivizes capital investment,” said MoonPay President Keith Grossman. “What that means for short-term price action? Who knows. And, I do not care. I am long crypto and am proud to be building in this ecosystem.”
In fact, many are more focused on the 1 p.m. meeting at the White House between crypto and banking representatives, where the two sides will begin hashing out disagreements over stablecoin yield. How much interest stablecoin holders earn, and how it’s paid, remains a key roadblock in Clarity Act negotiations, currently stalled in the Senate Banking Committee.
Quick recap: Provisions on stablecoin yield in the Banking Committee’s bill, which Coinbase said favored the banks too heavily, prompted the exchange’s CEO Brian Armstrong to withdraw support last month, causing the committee to delay its vote. The White House and the Banking Committee have told Coinbase, whose business depends more on stablecoin yield than most due to its deal with USDC issuer Circle, that it must reach an agreement with the banks before a new markup can be scheduled. This meeting is the first step.
Coinbase’s Head of U.S. Policy, Kara Calvert, will attend, along with heads of crypto trade groups Blockchain Association, Digital Chamber, and Crypto Council for Innovation. Banking representation will come from the American Bankers Association and the Independent Community Bankers of America. The White House will be represented by the President’s Council of Advisors for Digital Assets, including Executive Director Patrick Witt.
A source familiar with the event told Crypto In America that it is intended as a working session to facilitate discussion, “not ambushing or ganging up on either side,” and is likely the first of several conversations on the topic.
While the meeting itself may be cordial, community banks are lobbying hard ahead of it. On Friday, Consumer Action For A Strong Economy (CASE) released what it described as a six-figure ad campaign urging senators to side with community banks and “close the stablecoin loophole.”
The ad cites a study attributed to the Treasury Department that claims stablecoins could drain up to $6.6 trillion from the U.S. banking system and raise lending costs for consumers and small businesses. But the crypto industry is pushing back, saying the study was actually done by the Treasury Borrowing Advisory Committee, a panel of major banks that advises the Treasury on debt and borrowing — in other words, the banks themselves, not the Treasury Department.
It’s unclear how many sessions will be needed before both sides reach a deal, leaving the Senate Banking Committee’s vote on the Clarity Act hanging in the balance. Last week, the Senate Agriculture Committee advanced its portion of the bill on a 12-11 party-line vote; no Democrats supported the bill.
Chairman John Boozman (R-AR) told Crypto In America that he was disappointed none of his Democrat colleagues supported the bill. He remains hopeful that ongoing discussions with Senator Cory Booker (D-NJ) in the coming weeks could persuade some to vote yes once the full bill reaches the Senate floor.
Meanwhile, the industry is watching closely — and it wants politicians to know fundraising numbers are at record highs heading into the midterms. Last week, pro-crypto super PAC Fairshake reported a war chest of more than $193 million for the 2026 elections, mostly from 2025 contributions, including $25 million each from Coinbase and Ripple and a $24 million donation from venture capital giant a16z.
“We are united behind our mission, with Fairshake continuing to oppose anti-crypto politicians and support pro-crypto leaders,” said Josh Vlasto, a spokesman for Fairshake.
SEC’s Innovation Exemption Delayed
The Securities and Exchange Commission has delayed the rollout of its highly anticipated innovation exemption, which would allow crypto firms to test blockchain-based products in a controlled “sandbox” without immediately registering with Wall Street’s cop on the beat.
SEC Chair Paul Atkins said last year the agency aimed to roll out the exemption by January, but revealed in a fireside chat with CFTC Chair Michael Selig on Thursday that it is still in the works, though he didn’t provide a new timeline. He added that it would be nice to see some direction from Congress on the Clarity Act, but he is not necessarily waiting for the bill to pass.
Selig also announced plans to encourage U.S.-based crypto innovation, including creating safe harbors for DeFi developers, exploring an innovation exemption, and bringing perpetual futures markets under CFTC oversight.
Watch the full discussion here.
👀 What To Watch This Week
Monday
1:00 p.m.: The White House will host a roundtable with crypto and banking industry representatives to discuss differences over stablecoin yield.
Tuesday
10:00 a.m.: Ondo Finance kicks off its annual Summit in NYC, featuring speakers from BlackRock, WisdomTree, DTCC, the White House and more.
Wednesday
10:00 a.m.: Treasury Secretary Scott Bessent will testify before the House Financial Services Committee on the annual report of the Financial Stability Oversight Council.
2:00 p.m.: The House Financial Services Capital Markets subcommittee will hold a hearing titled “A New Day at the SEC: Restoring Accountability, Due Process, and Public Confidence.”
Thursday
9:00 a.m.: The Digital Assets at Duke Conference kicks off a two-day event at Duke University, featuring speakers across policy, legal, major firms and AI.
10:00 a.m.: Bessent will testify before the Senate Banking Committee on the annual report of the Financial Stability Oversight Council.
Friday
8:30 a.m.: Jobs Friday: The BLS will release its latest jobs report and the unemployment rate for January.
10:00 a.m.: A preliminary read on consumer sentiment from the University of Michigan.
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