At a glance

Key numbers

House vote
294–134
Passed July 17, 2025
Deadline
Feb 28
White House deadline for stablecoin yield deal
Cosponsors
21
14 R / 7 D + sponsor
Industry lobbying (2025)
$14.6M+
Led by Coinbase at $2M+
Polymarket odds
70%
Signed into law by Dec 2026
Fairshake war chest
$193M
2026 midterm PAC funding
Legislative history

Timeline and latest news

Feb 13, 2026
Bessent calls for spring signing, cites midterm pressure
Treasury Secretary Bessent calls for rapid passage, signals spring signing target. Says the 2026 midterms create urgency. Separately, Patrick Witt (crypto council director) tells Yahoo Finance: “I believe we’ll get this done.”
Feb 12, 2026
SEC Chair Atkins: rules without legislation aren’t “future-proof”
Atkins tells Senate Banking Committee the SEC can write interim crypto rules but they’re vulnerable to reversal without statutory backing. References “our now-joint Project Crypto” SEC-CFTC collaboration. Sen. Mark Warner (D-VA) signals Democrats haven’t abandoned talks.
Feb 10, 2026
Second White House meeting — bankers demand total yield ban
Banks arrive with a “principles” document calling for a complete ban on stablecoin yield. No compromise reached. BofA CEO Moynihan reportedly warns trillions could migrate from bank deposits to yield-bearing stablecoins. White House sets end-of-Feb deadline for a deal.
Feb 5, 2026
Bessent calls industry holdouts “nihilists” at FSOC testimony
Treasury Secretary Bessent tells FSOC that crypto firms blocking legislation are “nihilists” who should “move to El Salvador.” Strongest White House rhetoric yet against industry opposition.
Jan 29, 2026
Senate Ag Committee advances DCIA — 12 to 11
Party-line vote. First time a crypto market structure bill clears a Senate committee. All Democratic amendments (ethics, DeFi, AML) fail 12-11. Bill text unchanged post-markup.
Jan 21–23, 2026
Davos confrontation
Armstrong clashes with JPMorgan CEO Jamie Dimon and BofA CEO Brian Moynihan at WEF. Dimon accuses Armstrong of “lying on television” about banks sabotaging crypto legislation. Industry split deepens.
Jan 21, 2026
Senate Ag releases updated bill text
Chairman Boozman releases the “Digital Commodity Intermediaries Act” (S. 3755). Republican-only version — bipartisan support collapses after Booker walks away. Focuses on CFTC intermediary registration.
Jan 14, 2026
Coinbase withdraws support — markup postponed
CEO Brian Armstrong posts on X: “There are too many issues.” Objects to stablecoin yield restrictions, tokenized equity limits, DeFi surveillance provisions, and weakened CFTC authority. Senate Banking Committee delays Jan 15 markup within hours.
Jan 12, 2026
Senate Banking releases 278-page draft
New draft introduces stablecoin yield restrictions, expanded BSA/AML provisions, and DeFi protocol reporting requirements. Sparks immediate industry backlash.
Nov 10, 2025
Senate Agriculture discussion draft
Sens. John Boozman (R-AR) and Cory Booker (D-NJ) release bipartisan discussion draft of the Senate Ag Committee’s version.
Sept 18, 2025
Received in the Senate
H.R. 3633 formally received and referred to Committee on Banking, Housing, and Urban Affairs.
Sept 5, 2025
Responsible Financial Innovation Act draft
Senate Banking Committee releases 182-page discussion draft building on the CLARITY Act framework.
July 22, 2025
Senate Banking discussion draft
Sens. Tim Scott, Cynthia Lummis, Bill Hagerty, and Bernie Moreno release Senate Banking Committee’s version for public review. Scott calls the House bill a “strong template.”
July 17, 2025
House passage — 294 to 134
Passes under structured rule (H. Res. 580). Bipartisan support with significant Democratic crossover. Same week the GENIUS Act (stablecoin bill) passes both chambers.
June 10, 2025
Committee markup sessions
House Financial Services Committee (32-19) and Agriculture Committee (47-6) both advance the bill. Agriculture Committee passes with strong bipartisan support. Reports filed June 23 (H. Rept. 119-168, Parts I and II).
May 29, 2025
Bill introduced in the House
House Financial Services Committee Chairman French Hill introduces H.R. 3633. Referred to Committee on Financial Services and Committee on Agriculture. 8 original cosponsors; 21 total (14 R, 7 D).
Scroll for more ↓
Pro-market milestone Procedural / neutral Mixed / contentious Setback Developing
Senate tracker

Where the bill stands in the Senate

Committee / bodyVersionStatusKey sticking point
Senate Agriculture CommitteeDigital Commodity Intermediaries Act (S. 3755)Advanced 12-11
Jan 29, 2026		Partisan only. No ethics amendment. DeFi treatment deferred. Meme coins under CFTC.
Senate Banking CommitteeCLARITY Act (Senate version, 278-page draft)Markup postponed
Jan 14, 2026		Stablecoin yield ban (Senate draft). Coinbase opposition. Banking vs. crypto lobbying war. No reschedule date.
Full Senate floorRequires reconciliation of Ag + Banking versionsPending committee actionNeeds 60 votes to overcome filibuster. Republicans hold 53 seats — need 7+ Democrats.
House-Senate conferenceFinal bill must reconcile with House H.R. 3633Not yet triggeredHouse version differs on stablecoins, DeFi scope, and tokenized equities.
Core framework

What the CLARITY Act does

Jurisdictional division
CFTC authority Exclusive jurisdiction over “digital commodity” spot markets. Covers sufficiently decentralized tokens like BTC and ETH. Registers exchanges, brokers, and dealers.
SEC authority Retains jurisdiction over “investment contract assets” (digital asset securities). Oversees tokens sold as part of investment contracts.
Joint rulemaking SEC and CFTC required to issue joint rules on mixed digital asset transactions, portfolio margining, and conflict of interest provisions.
SEC rulemaking deadline 270 days post-enactment (Sec. 105)
Key provisions
Asset classification Creates three categories: digital commodities, investment contract assets, and permitted payment stablecoins.
Mature blockchain test Token qualifies as digital commodity if no single entity controls 20%+ of supply or governance. Provides measurable legal path out of investment contract asset classification.
DeFi exclusion Sec. 309 / 409: Excludes DeFi activities and non-controlling blockchain developers from certain registration requirements.
Stablecoin treatment Sets bank-level prudential rules for permitted payment stablecoin issuers. Senate Banking Committee’s Jan 12 draft introduces stablecoin yield restrictions — the primary source of industry dispute. House-passed bill does not contain these restrictions.
Anti-CBDC provision Title VI (added via Rules Committee substitute during House floor action) includes the “Anti-CBDC Surveillance State Act” — prohibits Federal Reserve from offering retail products or using CBDC for monetary policy.
State preemption Sec. 308: Exempts digital commodities from state securities laws. Does not explicitly address state gambling law preemption for event contracts.
Ethics clause Existing OGE rules bar Congress members and senior officials from issuing digital commodities while in office. Democrats want stronger provisions.
Consumer protections Customer asset segregation, disclosure requirements, conflict of interest safeguards, educational material mandates.
AML/illicit finance Senate version significantly expands illicit finance provisions for digital assets. Applies BSA/AML/CFT requirements to centralized intermediaries and extends reporting obligations to certain DeFi protocols.
Scope limits

What the CLARITY Act does not do

Does not regulate DeFi lending or borrowing The bill excludes decentralized finance protocols from most registration requirements (Sec. 309/409). DeFi lending, borrowing, and liquidity pools remain outside the statutory framework. Non-custodial developers are carved out entirely.
Does not address event contracts or prediction markets Does not amend CFTC Reg. 40.11 (event contract rules) or resolve the federal-vs-state prediction market jurisdiction question. That fight continues separately through CFTC rulemaking and litigation.
Does not create a federal licensing regime for stablecoin issuers Stablecoin prudential rules are addressed in the GENIUS Act (separate legislation). CLARITY Act sets classification rules but defers issuer licensing to other law.
Does not ban or regulate NFTs Title V mandates a study on non-fungible tokens (Sec. 505) but does not classify or regulate them. NFT treatment is deferred to future rulemaking.
Does not preempt state gambling laws Sec. 308 preempts state securities laws for digital commodities, but does not address state gambling or gaming law preemption. States retain authority to regulate event contracts and prediction markets.
Does not address crypto taxation Tax treatment of digital assets is handled separately by the PARITY Act and existing IRS guidance. CLARITY Act is a market structure bill, not a tax bill.
Does not resolve the stablecoin yield dispute The Senate Banking Committee’s Jan 12 draft yield restrictions are the primary reason the bill is stalled. Whether stablecoin rewards are permitted, banned, or carved out remains the central unresolved question as of Feb 2026.
Bill support

Cosponsors

22 sponsors (14 Republican, 7 Democrat + sponsor)
French Hill
R-AR-2 · HFSC Chair
Sponsor
Glenn Thompson
R-PA-15 · Ag Chair
Original
Angie Craig
D-MN-2
Original
Tom Emmer
R-MN-6 · Majority Whip
Original
Dusty Johnson
R-SD-AL
Original
Donald G. Davis
D-NC-1
Original
Bryan Steil
R-WI-1
Original
Ritchie Torres
D-NY-15
Original
Josh Gottheimer
D-NJ-5
Original
Warren Davidson
R-OH-8
Bill Huizenga
R-MI-4
Zachary Nunn
R-IA-3
Michael Lawler
R-NY-17
Daniel Meuser
R-PA-9
Buddy Carter
R-GA-1
Riley Moore
R-WV-2
Nicholas Begich III
R-AK-AL
Kristen McDonald Rivet
D-MI-8
Mark Messmer
R-IN-8
Robert Bresnahan Jr.
R-PA-8
Haley Stevens
D-MI-11
Shri Thanedar
D-MI-13
Republican 14 Democrat 7 Original = cosponsor at introduction
Influence

Industry lobbying on the CLARITY Act (2025)

Top spenders — $14.6M+ total lobbying on CLARITY Act and related bills
Source: Washington Examiner analysis of lobbying disclosures (Jan 17, 2026). Amounts are approximations — source reports “over $1M” for several firms. Q4 2025 filings incomplete — actual totals likely higher. Commercial banks spent $56.7M on lobbying in 2025 (not CLARITY-specific, per OpenSecrets).
Fairshake PAC — 2026 midterm war chest
Total raised $193M cash on hand (announced Jan 28, 2026 via press statements; not yet reflected in public FEC filings at time of announcement)
Top donors Coinbase ($25M), Ripple Labs ($25M), a16z ($24M). Includes affiliated PACs Protect Progress (D) and Defend American Jobs (R).
2024 cycle spending $130M+ on media buys. 12 of 22 CLARITY Act sponsors backed by Fairshake network.
vs. banking lobby Commercial banks spent $56.7M on federal lobbying in 2025. CLARITY Act appeared on many bank lobbying disclosures — opposing stablecoin yield loopholes.
Stakeholders

Key players

Legislators
Rep. French Hill (R-AR)House Financial Services Chair. Bill sponsor. Pushing for bicameral reconciliation.
Sen. Tim Scott (R-SC)Senate Banking Committee Chair. Leading Senate version. Crypto industry top recipient.
Sen. Cynthia Lummis (R-WY)Subcommittee on Digital Assets Chair. Co-released Senate Banking discussion draft.
Sen. John Boozman (R-AR)Senate Ag Committee Chair. Steered DCIA through committee markup. Led party-line vote.
Sen. Cory Booker (D-NJ)Lead Democratic negotiator. Withdrew from bipartisan Ag draft over ethics provisions and Trump family crypto conflicts.
Sen. Elizabeth Warren (D-MA)Senate Banking Ranking Member. Opposes weak AML provisions and DeFi exclusions.
Executive branch
President TrumpPublicly urged Congress to pass crypto market structure bill. Wants U.S. as “crypto capital of the world.” Personal crypto interests complicate ethics debate.
Treasury Sec. Scott BessentActively mediating bank-crypto dispute. Called industry holdouts “nihilists” at Feb 5 FSOC testimony. Pushing for spring signing.
Patrick WittWhite House crypto council executive director. Publicly criticized Armstrong’s opposition. Hosting Feb 10 mediation.
CFTC Chair Michael SeligConfirmed Dec 18, 2025 (sworn Dec 22). Jan 29 speech launched new event contract rulemaking. Withdrew 2024 proposed ban and 2025 staff advisory.
SEC Chair Paul AtkinsProposed crypto asset taxonomy classifying most tokens as non-securities. Referenced “our now-joint Project Crypto” SEC-CFTC collaboration during Feb 12 Senate Banking testimony.
Industry
Coinbase (Brian Armstrong)Largest U.S. crypto exchange. Withdrew support Jan 14 over stablecoin yield ban, tokenized equity limits. Over $2M in direct CLARITY Act lobbying. $25M to Fairshake.
a16z (Chris Dixon)Major VC backer. Publicly disagreed with Armstrong’s withdrawal. Urged pushing bill forward despite flaws.
Ripple (Brad Garlinghouse)Supports passing bill with imperfections over continued uncertainty.
Banking industryJPMorgan, BofA, Wells Fargo opposing stablecoin yield loopholes. $56.7M in lobbying spend (2025). Fear deposit flight to crypto platforms.
Fairshake PAC$193M cash on hand for 2026 midterms. Funded by Coinbase ($25M), Ripple, a16z. 12 of 22 bill sponsors backed by Fairshake network.
Blockchain Association~$1.5M in CLARITY Act lobbying (2025, second-highest).
Fault lines

Unresolved disputes

Stablecoin yieldThe central dispute. Banks want all stablecoin yield banned. Coinbase argues its USDC rewards (~3.5%) aren’t deposits. Senate Banking draft would effectively ban yield. GENIUS Act left a loophole for non-issuer affiliates. White House mediating with end-of-Feb deadline.
Ethics / Trump conflictsDemocrats demand provisions banning officials from profiting off crypto. Republicans say existing OGE rules are sufficient and ethics amendments are outside Agriculture Committee jurisdiction. Public Citizen calls the bill the “gryfto bill.”
DeFi protocol oversightSenate Banking draft extends BSA/AML obligations to some DeFi protocols. Coinbase and privacy advocates object. Ag Committee bill defers DeFi entirely. Non-custodial developer treatment unresolved.
Tokenized equitiesSenate draft restricts how blockchain-based shares operate on crypto infrastructure. Industry warns this stifles digital securities markets. NYSE has announced its own tokenization plans.
CFTC governanceDemocrats want a fully staffed, bipartisan CFTC before expanding its authority. Agency currently has vacancies. Amendment to require bipartisan commission failed 12-11.
60-vote thresholdRepublicans hold 53 seats. Need 7+ Democratic crossovers to overcome filibuster. Current partisan trajectory makes floor passage uncertain without compromises on ethics and DeFi.
Bill structure

Six titles of the CLARITY Act (House-passed)

Title IDefinitions, rulemaking, expedited registration. Defines digital commodity, investment contract asset, mature blockchain, mixed digital asset transaction. Sets 270-day SEC rulemaking deadline (Sec. 105).
Title IISEC jurisdiction provisions. Treatment of investment contract assets. Clarifies when tokens are securities. Registration exemptions for mature blockchains.
Title IIIJoint SEC-CFTC provisions. Treatment of digital commodities and stablecoins. Anti-fraud authority. ATS eligibility. Dual-registration rules. State securities law preemption.
Title IVCFTC jurisdiction. Digital commodity exchange registration (Sec. 404). Broker/dealer requirements. Commodity pool operator extensions. Customer asset segregation. The heart of the CFTC expansion.
Title VInnovation and studies. Codifies LabCFTC as Strategic Hub for Innovation and Financial Technology. Mandates studies on DeFi, NFTs (Sec. 505), financial literacy, and market infrastructure.
Title VIAnti-CBDC Surveillance State Act. Added via Rules Committee substitute amendment during House floor action (not in introduced text). Prohibits Federal Reserve from issuing a retail CBDC or using it for monetary policy.
Reference

Key legal analyses and primary sources

Market pricing

Prediction market contracts on CLARITY Act passage

Polymarket70% YES as of Feb 15, 2026. ~$82K+ total volume. Highly volatile: started ~80% in early Jan, crashed to ~50% after Coinbase withdrawal (Jan 14), recovered to 53% by late Jan, spiked to 72% during Senate Democratic caucus meeting, now at 70%. Contract: H.R. 3633 specifically — similar bills under different numbers resolve NO.
KalshiBroader “crypto market structure legislation” framing with monthly expiry contracts. More conservative than Polymarket — reflects skepticism about Senate Banking Committee timeline and stablecoin yield compromise deadline.
Resolution criteriaPolymarket: bill must be signed under H.R. 3633 specifically by Dec 31, 2026 — revised Senate proposals or alternative bill numbers resolve NO. Kalshi: broader category framing with monthly expiry contracts (March, June, etc.).
Spread contextPolymarket typically higher than Kalshi, likely reflecting different resolution criteria (bill-specific vs. category), different user bases, and Polymarket’s crypto-native audience being more optimistic about passage. White House set end-of-Feb deadline for stablecoin yield compromise — next major catalyst for both markets.