March Brings Another Shot at Clarity Act Markup as Stablecoin Talks Drag On
A White House deadline for banks and crypto to strike a stablecoin deal has passed — now what?
Welcome to the Monday edition of the Crypto In America newsletter!
What you’ll read: A new month, another shot at passing Clarity through the Senate? What still needs to happen before that. Plus, what to watch this week, and some weekend news you might have missed.
March is upon us, and it could bring long-awaited action on the Clarity Act, including a second attempt at a Senate Banking Committee markup and, if it passes, preparing the bill for a full Senate vote.
The March 1 deadline for banks and crypto to bridge the gap on stablecoin rewards, set by White House Crypto Council Executive Director Patrick Witt, has passed with no announcement of a compromise.
However, crypto stakeholders insisted that negotiations are ongoing, and expressed confidence that a deal can still be reached, despite a report suggesting that talks were breaking down behind the scenes.
“These are complex negotiations involving multiple stakeholders, and bridging meaningful policy differences takes sustained engagement,” Blockchain Association CEO Summer Mersinger, who’s been active in the discussions, posted on X on Friday.
A banking-side source with direct knowledge of the ongoing meetings also challenged the notion that talks were falling apart, telling Crypto In America that both sides are still providing input on legislative text, and aren’t necessarily bound by the March 1 deadline.
“Overindexing on March 1 is a mistake,” the source said.
But another banking source who spoke with Crypto In America didn’t dispute that crypto and the banks aren’t fully on the same page regarding a deal.
“There’s agreement in-principle that stablecoin balances shouldn’t earn interest, but crypto firms are still trying to backdoor APY on balances through membership programs, rewards, and staking,” the source said. “I think that’s what’s holding up the deal right now.”
The source added that banks want any lending or staking to be “active,” “bona fide,” and “time-locked,” tied only to investment returns, and warned that vague language could let crypto effectively recreate interest under different labels. They say the crypto industry is avoiding specifics to preserve flexibility, while the White House wants to settle the details through agency rulemaking — a solution banks worry won’t fully protect their principles.
However, the Office of the Comptroller of the Currency may have strengthened the banks’ position by signaling in last week’s proposed rulemaking for the GENIUS Act that stablecoin rewards could face tighter limits than the crypto industry had anticipated.
It’s unclear how long the yield talks, now in their second month, will take or whether a compromise can be reached, but stakeholders and the White House remain keen to keep negotiations moving.
“What we’ve heard from the senators is that we’re not trying to make either side totally happy, and I think we’re very close to that moment where both sides aren’t very happy — which usually means we’re getting close to a deal,” Andreessen Horowitz’s head of government affairs, Collin McCune, told Crypto In America.
A White House spokesperson did not respond to a request for comment.
Meanwhile, the Senate Banking Committee is said to be eyeing possible markup dates in mid-to-late March, which would give stakeholders a few more weeks to iron out remaining issues, like DeFi and ethics, before a potential vote.
“I think overall things are moving, and it feels like issues are being closed out, but DeFi has taken a backseat to the yield conversation,” Amanda Tuminelli, executive director of the DeFi Education Fund, told Crypto In America. “We’re waiting for Senate Banking to announce the next markup date and updated text, so I think everyone is anxiously awaiting to see what the next draft looks like.”
A member meeting between Senate Democrats on market structure last week was “positive,” two staff-level attendees said.
👀 What To Watch This Week
Monday
Riot Platforms (RIOT) and Core Scientific (CORZ), the fourth and sixth largest Bitcoin miners by market cap, are expected to release quarterly earnings after the bell. Amid the recent market downturn and pressure on miners, both are expected to report losses.
Tuesday
9:00 a.m.: The Milken Institute hosts its Future of Finance event in Washington, D.C., featuring a handful of panels on crypto and notable speakers like SEC Chair Paul Atkins, CFTC Chair Michael Selig, Rep. Bryan Steil (R-WI), House Financial Services Committee Chair French Hill (R-AR), Senator Angela Alsobrooks (D-MD), and NEC Director Kevin Hassett.
Wednesday
2:00 p.m.: The Fed publishes its latest Beige Book, a snapshot of economic conditions across its regional districts based on business surveys and local reports.
Friday
8:30 a.m.: The Bureau of Labor Statistics will release the February jobs report, including the latest unemployment rate.
Weekend News Flash
Weekend U.S.–Israel strikes that killed Iran’s Supreme Leader Ayatollah Ali Khamenei triggered extreme volatility, with Bitcoin plunging near ~$63,000 and heavy liquidations before bouncing as high as ~$68,000. The broader crypto market is rallying today, with Bitcoin climbing over $69,000.
Gold rallied over 2% toward $5,400 an ounce as traders piled into safe‑haven assets amid U.S.–Israel strikes on Iran and heightened geopolitical risk.
The U.S. government labeled Anthropic AI a supply chain risk, ordering all agencies to stop using its technology. Shortly after, OpenAI announced a deal with the Pentagon.
Morgan Stanley filed with the OCC for a de novo national trust bank charter in order to custody crypto. The company said it will also use the new entity to conduct trading and facilitate staking for its investment clients.
Eleven Senate Banking Democrats sent a letter to Treasury Secretary Scott Bessent and Attorney General Pam Bondi urging the DOJ and Treasury to investigate Binance over media reports alleging ~$1.7 billion in Iran‑linked transactions and other illicit finance activity, warning the exchange may be violating its 2023 settlement, which required sweeping compliance reforms under U.S. supervision.
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