The crypto industry is back in the headlines, and this time, politics is once again driving the momentum. A fresh clash between Washington, Wall Street, and the crypto industry has reignited the debate around digital asset regulation, and the market is already reacting.

At the center of the fight is the CLARITY Act, a proposal meant to finally bring clear rules to the digital asset industry after years in a regulatory gray zone. Supporters say the framework could unlock innovation and broader adoption. But progress has stalled as major banks push back against stablecoins offering yield-like rewards, warning that such incentives could pull deposits away from traditional banking systems.

Just as the debate appeared stuck,…