Wall Street banks, crypto leaders set to meet in Washington with landmark Clarity Act hanging in the balance

Core Viewpoint - The final legislation needed to integrate the crypto industry with mainstream finance is facing significant challenges, primarily due to a standoff between Coinbase and the US banking sector, prompting intervention from the White House [1][2]. Group 1: Legislative Developments - A meeting hosted by crypto czar David Sacks will involve banking and crypto trade groups, including Coinbase, to negotiate policy matters [2]. - The Clarity Act aims to establish a regulatory framework for crypto in the US, detailing which federal agencies oversee various segments of the crypto market, including stablecoins and decentralized finance products [3][4]. - The Senate Agriculture committee recently passed a portion of the bill with a narrow party-line vote of 12 to 11, indicating potential difficulties in gaining broader support [5]. Group 2: Industry Reactions - Coinbase CEO Brian Armstrong has expressed concerns over the bill's draft, particularly regarding amendments that would eliminate rewards on stablecoins, leading to his rejection of the latest version [6][7]. - Armstrong's goals at the World Economic Forum include advancing market structure legislation and collaborating with bank CEOs to find mutually beneficial solutions [7].