 ▲ Stablecoin, Regulation/AI-Generated Image |
The White House is reportedly exerting strong pressure on both the banking sector and the crypto industry and leading emergency meetings to finalize the U.S. crypto market structure bill (CLARITY), with this weekend expected to become a decisive turning point for a major market transformation through regulatory clarity.
Paul Barron, host of the crypto-focused Paul Barron Podcast, said in an episode released on February 21 (local time) that the administration’s legislative push has reached its peak ahead of the March 1 deadline set for the U.S. crypto market structure bill.
Barron noted that attendees at this weekend’s closed-door meeting were even prohibited from bringing mobile phones to prevent information leaks and insider trading, emphasizing that this suggests the bill’s detailed provisions have entered the finalization stage. He refuted claims that expectations of regulatory approval have already been priced into Bitcoin (BTC), predicting that the scale of institutional capital inflows following actual passage of the bill would be beyond imagination.
As seen after the implementation of the GENIUS stablecoin regulation, when stablecoin trading volume surged explosively, the resolution of regulatory uncertainty provides the legal foundation for institutional investors to deploy funds in earnest. The U.S. Securities and Exchange Commission’s (SEC) decision to significantly reduce the haircut applied to broker-dealers’ stablecoin holdings from 100% to 2% marks a crucial change, enabling banks to reflect stablecoins as cash-equivalent assets on their balance sheets. Such policy considerations demonstrate regulators’ intent to incorporate digital assets into the mainstream financial system and are expected to serve as a practical catalyst for accelerating large-scale capital inflows.
Ripple has already completed infrastructure development by acquiring multiple companies in preparation for a new financial order following regulatory clarity. In a recent interview, Ripple CEO Brad Garlinghouse hinted at the possibility of acquiring a bank and signaled a comprehensive expansion of financial services based on the XRP Ledger. The participation of major banks as custodians for the RLUSD stablecoin marks an important milestone, showing that crypto firms are entering the core of the traditional financial system.
The Federal Reserve’s (Fed) decision to begin using prediction market data from Kalshi as part of economic indicator measurements demonstrates that blockchain-based technologies are becoming a standard within institutional finance. The Commodity Futures Trading Commission (CFTC), citing a federal court ruling, is protecting prediction markets as legitimate economic tools and fully supporting their autonomy from state-level intervention. Prediction markets are now recognized as innovative financial infrastructure capable of measuring macroeconomic trends in real time and maximizing the efficiency of financial markets.
The outcome of this weekend’s White House-led meeting is expected to determine the final direction of the U.S. crypto market structure bill and could position the United States to set the global standard for digital asset regulation. Once regulatory clarity is secured, the full-scale integration of digital assets and traditional finance is likely to become a powerful driver fundamentally revaluing major assets, including Bitcoin and XRP. Market participants are closely watching the administration’s final decision and the detailed implementation rules from regulators, preparing for the next upward cycle amid expectations of a massive liquidity wave.
Disclaimer: This article is for investment reference only, and no responsibility is assumed for any investment losses resulting from it. The content should be interpreted solely for informational purposes.