Uncertainty surrounding cryptocurrency regulations in the US has reignited tensions in Washington. As government officials, Wall Street representatives, and leading figures in the crypto sector prepare to meet at the White House on February 10th, the long-standing Clarity Act impasse is seen as entering a critical phase. At the heart of the discussions is the issue of interest-bearing stablecoins, which has become the most contentious topic of debate.
Why is stablecoin interest so controversial?
Crypto companies argue that stablecoins' ability to offer interest is a natural extension of a modern and efficient financial system. They claim this approach creates additional income opportunities for individual users and supports financial innovation. Coinbase, one of the sector's largest players, generated $355 million in revenue from stablecoin operations in the third quarter of 2025 alone. Companies argue that such returns have become an integral part of their business models and that banning them would cause the US to fall behind in global competition. The picture is quite different for traditional banks. Banks are warning that the proliferation of interest-paying stablecoins could lead to an outflow of approximately $6.6 trillion from deposit accounts. This scenario is seen as a serious risk to the banking system. Bank lobbies argue that these products could erode deposits, weaken the lending mechanism, and threaten financial stability. Further complicating the discussions is the proposed "skinny" master account system by the Federal Reserve. This system would grant some crypto companies limited access to central bank services. Crypto firms believe this access is insufficient for real growth and stability, while banks argue that even limited access could open the door too quickly. Ultimately, the proposal fails to satisfy either side, making compromise difficult. Past experiences show that delays in regulatory processes have severe impacts on the market. Following the February 2nd meeting, the total cryptocurrency market capitalization quickly fell from $2.64 trillion to $2.54 trillion. A bigger shock occurred on January 15th, when the Senate Banking Committee abruptly canceled the vote on the CLARITY Act, causing crypto prices to plummet by approximately 7.5% in minutes, wiping out billions of dollars in value.
On the other hand, it is known that the market recovers quickly when agreements are reached. The GENIUS Act, signed on July 18, 2025, triggered a nearly 12% increase in many altcoins in just one week. This example once again demonstrates how critical regulatory clarity is for markets.
Today, the market is once again in wait-and-see mode. Even before the meeting concludes, signs of stress are evident. Concerns that stablecoin interest rates could be banned are weakening investor confidence, while the total crypto market capitalization fell by 1.65% in a single day to $2.36 trillion. Bitcoin is trying to hold around the $69,000 level, while Ethereum has retreated to around $2,040.
