CLARITY Act Stalls Again as Banks Block Stablecoin Yield Deal
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Coin Newsweek – February 28, 2026 – The White House pushed for a breakthrough on stablecoin yield negotiations for the CLARITY Act this weekend, but fresh reports from sources close to the talks suggest the crypto market structure bill remains far from a final deal. Banking representatives and crypto lobbyists are still divided over whether stablecoins can generate yield for users, a dispute that continues to block progress in the Senate.
Eleanor Terrett @EleanorTerrett · 27 Feb
🚨NEW: Lots of crypto industry folks jumping to the defense of @patrickjwitt and the White House following comments from an unnamed source claimed to be directly involved in the stablecoin yield talks. I shared the post and the Crypto Twitter reaction with a banking-side source…
The CLARITY Act Nowhere Near a Resolution
According to Eleanor Terrett, banking-side sources described the negotiations bluntly. Draft language exists, but the sides are “not close.” Other banking trade groups pushed back on claims the talks are collapsing, saying discussions are ongoing and input on draft text continues. The split narrative reflects how fragile the negotiations have become.
Where the Bill Stands Now
The House passed the CLARITY Act in July 2025 with bipartisan support. The bill aims to define when digital assets fall under SEC oversight and when they qualify as commodities under the CFTC. It also establishes registration rules for exchanges, brokers, and custodians. After clearing the House, the bill moved to the Senate Banking Committee, where it has stalled. No markup has been completed and no floor vote is scheduled.
Austin Campbell @austincampbell · 27 Feb
If there is no deal, the language in Genius controls, which is broader than this. Banks backing themselves into a corner.
Stablecoin Yield Is the Flashpoint
Originally, the bill focused on regulatory clarity between the SEC and CFTC. But in early 2026, the fight shifted to stablecoins. Senate negotiators introduced draft language that would restrict interest or yield payments tied to stablecoin holdings. Banks support tighter limits, arguing that yield-bearing stablecoins could function like unregulated bank deposits.
Coin Newsweek @CoinNewsweek · 14 Jan
The CLARITY Act just changed. The Senate amendment adds more SEC power, more disclosures, tighter stablecoin rules, and DeFi oversight. Coinbase has already opposed this version ❌
Crypto firms strongly oppose that view. Coinbase CEO Brian Armstrong has publicly argued that stablecoins can generate yield responsibly and that banning rewards would harm innovation. That disagreement now threatens the broader market structure framework.
White House Pressure, But No Breakthrough
The White House has convened meetings between banks and crypto firms in recent weeks, with officials reportedly wanting a deal on yield before March. However, sources say key language remains unresolved.
Paul Barron @paulbarron · 20 Feb
🔥Just heard from my DC sources: The White House is now leaning on banks, and the banks are holding the CLARITY Act hostage. They continue to want to ban stablecoin yield because they’re scared of competition. 🏦🛑 I expect them to cave soon. Banks have already lost trillions to…
Bank trade groups 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 finalized text.
What Is Still Unresolved
Four core issues remain: whether stablecoin rewards count as prohibited interest, how sharply to limit exchange incentives, the final boundary between SEC and CFTC authority, and the scope of obligations for DeFi developers. Until yield language is settled, broader market structure reforms cannot move forward.
When Will the CLARITY Act Pass?
The next key step is a Senate Banking Committee markup, though no date has been announced. If negotiators narrow differences in March, a committee vote could follow later in the month. If talks drag on, the bill risks slipping deeper into election-year politics. For now, the CLARITY Act remains alive but stalled. The question is no longer whether Congress wants crypto rules, but whether banks and crypto firms can agree on who controls stablecoin economics.
Sources: Eleanor Terrett, Austin Campbell, Paul Barron, Coin Newsweek, Senate Banking Committee
Disclaimer: This content is for market information purposes only and does not constitute investment advice. Cryptocurrency investments involve high risk.
