CLARITY Act Stalls in Senate Over Stablecoin Yield Disagreements

The CLARITY Act, a key piece of legislation aiming to provide regulatory clarity between the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC), has hit a roadblock in the Senate. The main point of contention is stablecoin yield, with banks and crypto firms holding different views on the matter.

According to sources close to the negotiations, draft language for the bill remains unresolved, despite the White House's efforts to broker a deal before March. This has put the bill's passage in jeopardy, as it cannot move forward without agreement on key issues.

The CLARITY Act, which passed the House with bipartisan support in July 2025, 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. However, the Senate Banking Committee has yet to complete a markup or schedule a floor vote.

The disagreement over stablecoin yield is the main hurdle to progress. Banks support tighter limits on interest or yield payments tied to stablecoin holdings, while crypto firms argue that responsible yields can be generated without harming innovation. This split narrative reflects the fragile nature of the negotiations, which have been ongoing for several months.