CLARITY Act Still Faces Push From Banks as Yield Fight Stalls Deal
The White House pushed for a breakthrough on stablecoin yield negotiations for the CLARITY Act this weekend. It didn’t occur. Instead, contemporary stories from sources near the talks recommend the crypto market construction invoice stays removed from a closing deal.
Banking representatives and crypto lobbyists are nonetheless divided over whether or not stablecoins can generate yield for customers. That dispute continues to dam progress within the Senate.
The CLARITY Act Nowhere Near a Resolution?
According to Eleanor Terrett, banking-side sources described the negotiations bluntly. Draft language exists, however the sides are “not shut.”
Other banking commerce teams pushed again on claims the talks are collapsing, saying discussions are ongoing and enter on draft textual content continues.
The split narrative displays how fragile the negotiations have turn out to be.
Where the Bill Stands Now
The House handed the CLARITY Act in July 2025 with bipartisan help. The invoice goals to outline when digital belongings fall below SEC oversight and once they qualify as commodities below the CFTC. It additionally establishes registration guidelines for exchanges, brokers, and custodians.
After clearing the House, the invoice moved to the Senate Banking Committee. There, it stalled.
No markup has been accomplished. No ground vote is scheduled.
The laws stays caught in committee.
Stablecoin Yield Is the Flashpoint
Originally, the invoice centered on regulatory readability between the SEC and CFTC. But in early 2026, the battle shifted to stablecoins.
Senate negotiators launched draft language that might limit curiosity or yield funds tied to stablecoin holdings. Banks help tighter limits. They argue that yield-bearing stablecoins may operate like unregulated financial institution deposits.
Crypto companies strongly oppose that view. Coinbase CEO Brian Armstrong has publicly argued that stablecoins can generate yield responsibly and that banning rewards would hurt innovation.
That disagreement now threatens the broader market construction framework.
White House Pressure, But No Breakthrough
The White House has convened meetings between banks and crypto companies in latest weeks. Officials reportedly wished a deal on yield earlier than March.
However, sources say key language stays unresolved.
Bank commerce teams such as the American Bankers Association and the Independent Community Bankers of America have reportedly rejected claims that negotiations are collapsing. Still, there is no such thing as a finalized textual content.
What Is Still Unresolved
Four core points stay:
- Whether stablecoin rewards depend as prohibited curiosity
- How sharply to restrict alternate incentives
- The closing boundary between SEC and CFTC authority
- The scope of obligations for DeFi builders
Until yield language is settled, broader market structure reforms cannot move forward.
When Will the CLARITY Act Pass?
The subsequent key step is a Senate Banking Committee markup. No date has been introduced.
If negotiators slim variations in March, a committee vote may observe later within the month. If talks drag on, the invoice dangers slipping deeper into election-year politics.
For now, the CLARITY Act stays alive — however stalled.
The query is now not whether or not Congress needs crypto guidelines. It is whether or not banks and crypto companies can agree on who controls stablecoin economics.
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