CLARITY Act Stalled Due to Stablecoin Yield Disputes

The CLARITY Act, a bill aimed at establishing regulatory clarity between the SEC and CFTC on digital assets, remains stuck in the Senate Banking Committee. Despite efforts by the White House to facilitate negotiations, key issues such as stablecoin yield remain unresolved.

The legislation, which aims to define when digital assets fall under SEC oversight and when they qualify as commodities under the CFTC, has been delayed due to disagreements between banks and crypto firms over stablecoin yield. The bill's original focus was on providing regulatory clarity, but it has since shifted to address concerns around stablecoins.

The Senate amendment introduced in 2026 added provisions for tighter stablecoin rules, more SEC power, increased disclosures, and oversight of DeFi. However, this move has been met with opposition from crypto firms, who argue that stablecoins can generate yield responsibly.