#CLARITYActAdvances CLARITY Act Advances Regulatory Turning Point — Stablecoin Reward Rules at the Center of Negotiations

Negotiations around the CLARITY Act have entered a decisive phase, with the White House acting as a mediator in the final dispute over stablecoin reward structures. As the soft March 1, 2026 target approaches, lawmakers are moving toward a compromise that could allow the bill to reach a final vote by early April 2026.
This moment represents more than legislative progress—it signals a structural transformation in U.S. digital asset governance.
🏛️ Legislative Momentum
The bill has already cleared major milestones. The U.S. House of Representatives passed the legislation in July 2025 with bipartisan support. The Senate version, advanced through the Agriculture Committee, emphasizes expanded oversight by the Commodity Futures Trading Commission. Market sentiment platforms such as Polymarket currently reflect high probability expectations for passage in early 2026.
The momentum indicates policymakers are prioritizing resolution of long-standing jurisdictional uncertainty in digital asset regulation.
⚖️ Core Negotiation Issue: Stablecoin Rewards
The primary conflict centers on whether issuers can provide yield-like incentives on stablecoin holdings.
Traditional banking institutions argue that passive reward structures could compete directly with savings deposit products, potentially accelerating outflows from conventional banking systems.
💡 Proposed Policy Compromise
The White House framework introduces a functional distinction:
• Prohibited: Passive, deposit-style rewards for simply holding stablecoins.
• Permitted: Activity-linked rewards tied to on-chain economic behavior such as liquidity provision or lending participation.
This structure attempts to preserve banking system stability while allowing blockchain-native financial models to evolve.
If accepted, this compromise could unlock rapid legislative progress before the March deadline.
✅ Structural Goals of the Bill
1️⃣ Jurisdictional Clarity
The Act aims to formally separate oversight responsibilities between the Securities and Exchange Commission and the CFTC. Assets such as Bitcoin and Ethereum are expected to fall primarily under commodity-style regulation, while security-like tokens remain under securities law frameworks.
2️⃣ Market Integrity & Investor Protection
The legislation strengthens disclosure standards and enforcement mechanisms to reduce systemic failures associated with centralized intermediaries.
3️⃣ Decentralized Finance Framework
Developers and validators who do not custody user funds may receive clearer legal protections, while platforms functioning as centralized gateways will remain subject to compliance obligations. This distinction is critical for sustaining open-source financial innovation.
🔮 Market Variables to Monitor
• Banking sector lobbying response to the reward compromise
• Final statutory language defining token classification boundaries
• Presidential signature timeline involving Donald Trump
If negotiations resolve by March 1, the bill could reach executive approval by early April.
Market Structure Implications
If enacted, regulatory risk premiums in U.S. digital asset markets may decline, potentially encouraging institutional allocation. Formalized stablecoin yield rules could accelerate compliant on-chain liquidity models and improve capital flow efficiency.
Bottom Line
The dispute over stablecoin rewards represents the final legislative bottleneck. If compromise is achieved, the United States may enter its first comprehensive digital asset regulatory regime within weeks—potentially reshaping institutional participation, global competitiveness, and long-term market architecture.