#CLARITYActAdvances

The CLARITY Act has advanced to a critical stage, with the White House mediating intense negotiations to resolve the last major hurdle: the rules around stablecoin rewards. With a soft deadline of March 1, 2026 looming, a compromise is within reach that could unlock the bill's passage by April .

Here is a breakdown of the key developments and sticking points:

🏛️ Current Legislative Status & Momentum

The bill has completed several key steps, building significant momentum:

· House Passage: The CLARITY Act previously passed the House in July 2025 with strong bipartisan support .
· Senate Progress: The Senate Agriculture Committee advanced its version of the bill in late January, which focuses on CFTC oversight of digital commodities .
· High Probability: Prediction markets like Polymarket now estimate a ~90% probability of the bill passing by early April 2026, reflecting growing confidence .

⚖️ The Main Hurdle: Stablecoin Rewards

The primary obstacle is a heated dispute between the crypto industry and traditional banks over stablecoin rewards .

· The Bank Stance: Traditional banks want a complete ban on stablecoin rewards, arguing that offering interest-like payments on stablecoins would lure deposits away from their accounts, threatening a core part of their business model .
· The Compromise Proposal: The White House has proposed a compromise to break the deadlock :
· Forbidden: "Passive" rewards for simply holding stablecoins (which compete directly with bank deposits).
· Permitted: "Active" rewards tied to specific on-chain activities, such as lending or providing liquidity.
· The Deadline: The White House has set a soft deadline of March 1, 2026, for stakeholders to reach a deal .

✅ What the CLARITY Act Aims to Achieve

Beyond the stablecoin debate, the bill establishes a comprehensive framework for digital assets in the U.S. :

· Regulatory Clarity: It clearly defines the jurisdiction between the SEC (for securities) and the CFTC (for commodities like Bitcoin and Ethereum), ending the years-long "turf war" .
· Investor Protection: The bill strengthens disclosure requirements, maintains anti-fraud authorities, and aims to prevent another FTX-style collapse by bringing digital asset markets under a clear regulatory structure .
· DeFi Protections: It protects software developers and validators who do not control user funds, while ensuring centralized intermediaries interacting with DeFi follow compliance standards .

🔮 What to Watch For

· Banking Agreement: The key signal to watch is whether the banking lobby agrees to the White House's "limited rewards" compromise. Recent reports suggest their stance may be softening .
· Next Steps: If an agreement is reached by March 1, the bill is expected to advance quickly, potentially reaching President Trump's desk # signature by early April .