Crypto Policy Update: Ripple CLO Teases “Compromise” as White House Pushes for March 1 Deadline
A major step forward in U.S. cryptocurrency regulation could be near. Stuart Alderoty, Ripple’s Chief Legal Officer...
Quick overview
- A recent White House meeting suggests a potential bipartisan compromise on U.S. cryptocurrency regulation is nearing completion.
- Major banking groups have presented a formal document outlining regulatory limits they are willing to accept, marking a shift from general discussions to policy drafting.
- Key issues under negotiation include stablecoin yields, custody exemptions for banks, and clearer operational rules for crypto firms.
- Despite optimism from industry leaders, the likelihood of the CLARITY Act passing has decreased to 54%, reflecting concerns over potential election-year gridlock.
A major step forward in U.S. cryptocurrency regulation could be near. Stuart Alderoty, Ripple’s Chief Legal Officer, posted on X Tuesday that a recent White House meeting was “highly constructive.” He suggested that a long-awaited bipartisan compromise on market structure may finally be within reach.
The “Tuesday Breakthrough”: Banks Present Written Terms
Negotiations on February 10, 2026, moved from general discussion to actual policy drafting. For the first time, major banking groups shared a formal “prohibition principle” document that details the regulatory limits they are prepared to accept.
Key Concessions and Discussion Points:
- Stablecoin Yields: Banks and crypto companies are working to find a compromise on whether non-bank stablecoin issuers can offer interest or rewards. This issue was a major obstacle that previously delayed the GENIUS Act.
- Custody Exemptions: Talks included ways for traditional banks to provide crypto rewards and custody services without the strict capital requirements that the SEC had previously set, such as the now-rescinded SAB 121.
- Operational Rules: The group discussed clearer definitions for what counts as “permissible account activity” for crypto-focused firms that want access to the federal payment system.
BREAKING: 🚨 The CLARITY Act deadlock is BROKEN!
"Hybrid Model" agreed for stablecoins (Fed & States split duties). 🤝
Redrafting is underway. Vote is imminent.
Huge win for regulatory clarity! $XRP $LUNC to the moon! 🚀#CLARITYAct #CryptoUpdate #XRP #LUNC #BullRun #Fed pic.twitter.com/x2mKohhfJX— Dr.Kritsada (@Dr_Kritsada) February 10, 2026
The March 1 Ultimatum
The White House and Treasury Secretary Scott Bessent have set a firm March 1 deadline to finish the legislative text. Speaking to the Senate Banking Committee this week, Bessent stressed the need for “market structure and clarity” by spring to avoid more deposit volatility and keep the U.S. competitive.
“We want to be the best regulatory regime for digital assets… to spark innovation,” Bessent stated, reiterating the administration’s goal of bringing crypto activity back onshore.
Market Sentiment: CLARITY Act Odds Dip to 54%
Even though industry leaders like Alderoty are optimistic, many in the market are still unsure. According to Polymarket, the chance of the CLARITY Act passing in 2026 has dropped to 54%, down from almost 70% in late January.
| Indicator | Status | Market Impact |
| Polymarket Odds | 54% (Down) | Reflects fears of election-year gridlock. |
| Senate Ag Committee | Passed | Bipartisan “Digital Commodity Infrastructure Act” advanced. |
| Senate Banking Committee | Pending | Focus remains on the CLARITY Act markup in late February. |
| Industry Sentiment | Neutral-Bullish | Leaders see the White House meetings as a net positive. |
Why the CLARITY Act Matters
If passed, the CLARITY Act would settle the “jurisdictional tug-of-war” by giving the CFTC control over most digital asset spot markets, while the SEC would keep authority over assets that fit updated security definitions.
This new framework is expected to bring in a large amount of institutional investment. It would give major banks like Goldman Sachs (which recently reported $2.3 billion in crypto holdings) the clear rules they need for full integration.
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