CLARITY Act Stalls-Crypto Firms Push New Changes to Break the Deadlock

Crypto firms push new stablecoin compromises to break the CLARITY Act deadlock as banks and lawmakers resume talks on market structure rules.

Efforts to advance the stalled CLARITY Act have resumed as crypto firms propose new changes.

The bill has faced delays due to disputes over stablecoins. Recent discussions suggest renewed attempts to reach common ground with banks and lawmakers.

Crypto Firms Offer New Stablecoin Concessions

Crypto industry leaders have proposed fresh compromises related to stablecoin regulation. These proposals aim to address long-standing concerns raised by banks.

The focus remains on how stablecoins interact with the traditional banking system.

One proposal would allow community banks to hold stablecoin reserves. Another option would permit banks to issue stablecoins through partnerships with crypto firms.

These ideas seek to expand the role of banks in digital asset markets.

Not all crypto firms support the same approach. However, the proposals show coordinated efforts to move the market structure bill forward.

Industry sources say discussions remain ongoing, with no final agreement reached.

Stablecoin Dispute Remains Central to Bill Delays

The stablecoin debate has been a key reason for the CLARITY Act stalling. Banks have raised concerns about deposit outflows linked to stablecoin adoption.

Crypto firms argue that clear rules could reduce uncertainty for all parties.

Recent proposals include requiring stablecoin issuers to keep part of their reserves at community banks.

This measure could help banks retain deposits. It could also strengthen ties between banks and crypto issuers.

Another suggestion would make it easier for banks to create their own stablecoins. Supporters say this could balance competition and oversight.

Critics remain cautious about potential risks to existing banking models.

**Related Reading: **CLARITY Act Enters Critical Phase Ahead of Senate Action January 27

Lawmakers Report Progress but No Final Agreement

The Trump administration recently hosted a meeting with crypto and banking groups. The White House discussion aimed to resolve remaining points of conflict.

No agreement emerged from the meeting, according to participants.

Senate Democrats later held internal discussions on the crypto market bill. Journalist Eleanor Terrett reported the talks were “positive” and productive. Lawmakers reviewed their positions and possible paths forward.

🚨NEW: Some color on today’s meeting: One Dem staff source said discussions were “positive” and the gathering was “arguably the most productive Democratic meeting to date.” Senate Majority Leader @SenSchumer made an appearance, emphasizing the importance of industry engagement… https://t.co/felxEb0pTi

— Eleanor Terrett (@EleanorTerrett) February 4, 2026

Senator Tim Scott, chair of the Senate Banking Committee, expressed continued optimism. He said,

“We can protect consumers and community banks while still allowing innovation.” He added that both sides are working toward balance.

Path Forward Remains Uncertain

Despite renewed talks, the CLARITY Act has not yet cleared major hurdles. Bank concerns over customer deposits remain unresolved.

Crypto firms continue to adjust proposals to address these worries.

Sources say it is unclear whether the new concessions will satisfy banking groups. Negotiations are expected to continue in the coming weeks.

Lawmakers have not set a timeline for a vote. The recent developments suggest movement after months of delays. However, the bill’s future depends on agreement over stablecoin rules.

Stakeholders on both sides remain engaged in ongoing discussions.