CLARITY Act Facts, Deadline and Updates

Senate Republicans held a closed meeting attended by White House Crypto Council director Patrick Witt. Sen. Lummis told reporters stablecoin yield negotiations are 99% resolved and the digital asset portions of the bill are in a good place — remaining friction is political, not technical. Senate Banking Republicans are now discussing attaching community bank deregulatory provisions to the CLARITY Act in exchange for the House accepting the Senate’s housing package, drawing the bill into a broader legislative trade. Sen. Moreno warned that if the bill does not advance by May, digital asset legislation may not move forward for years.

Senate Banking Committee Chairman Tim Scott said at the DC Blockchain Summit that “big momentum is finally on our side” and expected a first proposal in his hands by end of week. House Republican Dusty Johnson said he didn’t understand the Senate’s pace and warned “we really are running out of time,” noting that 3–4 Senate Democrats still need to commit before a deal can close.

The SEC and CFTC issued a joint 68-page interpretation explicitly naming 16 crypto assets as digital commodities and classifying staking, mining, and airdrops outside securities law. SEC Chair Atkins and Republican commissioners framed it as interim policy, writing: “Only Congress can rewrite the law, and we stand ready to work with CFTC Chairman Michael Selig to implement the CLARITY Act.”

Senators, crypto advocates, and bankers reached broad agreement on keeping rewards away from static stablecoin holdings that resemble bank accounts, though the American Bankers Association continued lobbying to close any yield loophole. Senators Alsobrooks and Tillis were reported to be working on compromise language. Unresolved issues beyond stablecoin yield include DeFi treatment, Democratic demands for CFTC/SEC appointments, and calls to ban senior government officials — including Trump — from profiting on personal crypto business ties.

Trump posted on Truth Social that he would not sign any legislation until the SAVE America Act — a voting reform bill requiring proof of citizenship for voter registration — cleared Congress in its strongest form. The post made no mention of crypto but placed the CLARITY Act further back in the Senate’s legislative queue.

President Trump posted on Truth Social accusing banks of holding market structure legislation “hostage” over their opposition to stablecoin yield provisions, and urged Congress to pass the CLARITY Act without delay. The post came as White House-facilitated negotiations between banking and crypto representatives continued, with draft language reportedly still circulating among lawmakers. Cardano founder Charles Hoskinson separately called the bill a “horrific, trash bill” that could push future crypto founders offshore. Via DeFi Rate

JPMorgan analysts led by Nikolaos Panigirtzoglou published a research note describing CLARITY Act passage by midyear as a “positive catalyst” for digital assets, citing regulatory clarity, institutional scaling, and tokenization growth as key drivers. Separately, Polymarket priced 2026 signing odds at 72%—up roughly 12 points from the prior week—while Ripple CEO Brad Garlinghouse put passage odds at 80–90% by late April. Via Yahoo Finance

The White House’s self-imposed March 1 deadline for banks and crypto firms to resolve stablecoin yield language expired without a public compromise. Crypto stakeholders insisted negotiations remain active, while a banking source said both sides are still exchanging legislative text. Senate Banking Committee is now eyeing a mid-to-late March markup window as a second attempt. Via Crypto In America

Senate Banking Committee oversight hearing with OCC, FDIC, and Fed officials dominated by stablecoin and CLARITY Act discussions. Chairman Tim Scott noted deposit flight fears “do not seem to be realized, whatsoever,” citing recent deposit increases. Sen. Warren pressed OCC Comptroller Gould on World Liberty Financial’s bank charter application. Via CoinDesk

Representatives Fitzgerald, Cline, and Lofgren introduced the Promoting Innovation in Blockchain Development Act of 2026, shielding software developers who don’t control customer funds from prosecution under money transmission laws. The Blockchain Association simultaneously sent 21 leaders from 18 companies to meet with 24 Senate offices on DeFi provisions in the CLARITY Act draft. Via CoinGape

OCC issued proposed rules implementing the GENIUS Act with a 60-day comment period. The proposal would restrict stablecoin-as-a-service platforms and presumes third-party yield arrangements violate the Act’s ban on issuer interest payments, casting doubt on Coinbase’s stablecoin rewards model and complicating CLARITY Act negotiations. Via OCC

Senate Democrats met to discuss advancing the crypto market structure bill ahead of the March 1 deadline. Separately, a16z’s Marc Andreessen and Chris Dixon briefed Senate Republicans, urging passage of the CLARITY Act. Polymarket odds recovered to 69% after dropping to as low as 42% earlier in the week. Via The Block

Patrick Witt told ETHDenver attendees that the gap between banks and crypto firms “shrunk considerably,” proposing draft language banning yield on idle stablecoin balances while permitting activity-based rewards. Violations would carry penalties up to $500,000/day. Witt said resolving rewards could trigger a “domino effect” accelerating Senate action before the March 1 deadline. Via Ledger Insights

Following the Feb 19 meeting, White House crypto adviser Patrick Witt outlined draft text allowing stablecoin rewards only for “activities or transactions (not balances).” The White House explicitly set March 1 as the deadline for reaching compromise language before Senate Banking Committee action. Via Disruption Banking

Third White House bank/crypto meeting reported progress but no final deal; participants described discussions as constructive, with draft language work continuing on stablecoin rewards.

Brian Armstrong publicly indicated progress in CLARITY/stablecoin-yield discussions, suggesting movement toward compromise while core policy disagreements remain unresolved.

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.”

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.

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.

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.

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.

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.

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.

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.

New draft introduces stablecoin yield restrictions, expanded BSA/AML provisions, and DeFi protocol reporting requirements. Sparks immediate industry backlash.

Sens. John Boozman (R-AR) and Cory Booker (D-NJ) release bipartisan discussion draft of the Senate Ag Committee’s version.

H.R. 3633 formally received and referred to Committee on Banking, Housing, and Urban Affairs.

Senate Banking Committee releases 182-page discussion draft building on the CLARITY Act framework.

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.”

Passes under structured rule (H. Res. 580). Bipartisan support with significant Democratic crossover. Same week the GENIUS Act (stablecoin bill) passes both chambers.

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).

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).