Elliptic indicated in a blog post that as part of an ongoing effort to further solidify the US’s position as a global enabler of web3 and digital assets, lawmakers and the White House are working urgently to advance the Digital Asset Market Clarity Act—widely known as the CLARITY Act—through the Senate. Blockchain analytics firm Elliptic also pointed out that the legislation, which sailed through the House of Representatives in July 2025, aims to establish clear jurisdictional boundaries between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), delivering the regulatory certainty the crypto industry has long demanded.
As of February 17, 2026, the bill faces its biggest hurdle yet: a heated dispute over stablecoin rules.
At the center of the impasse is a proposed amendment that would bar crypto exchanges and platforms from offering interest payments or rewards on stablecoins.
Banking groups argue this measure is essential to prevent stablecoins from functioning like unregulated savings accounts, which could draw deposits away from traditional banks and undermine the payment-focused intent of last year’s GENIUS Act.
Crypto advocates, however, contend the restriction would stifle competition and innovation, noting that the GENIUS Act already limits issuers but leaves platforms untouched.
The White House has stepped in directly to broker a resolution.
On February 2 and again on February 10, Patrick Witt, Executive Director of the President’s Council of Advisors for Digital Assets, hosted high-level meetings with representatives from both the banking and crypto sectors.
Industry sources indicate the banking side presented a formal proposal committing to strict limits on stablecoin rewards, but no final compromise has been reached.
The administration has set a March 1 deadline for agreement, warning that further delay could derail the entire package ahead of the November midterms.
Senate dynamics add another layer of complexity.
The Senate Banking Committee indefinitely postponed its January markup after Coinbase CEO Brian Armstrong publicly threatened to withdraw support if the controversial amendment remained.
Meanwhile, the Senate Agriculture Committee advanced its own version of market-structure legislation in January—albeit along party lines—without Democratic backing.
Senate Majority Leader John Thune has pledged to bring the bill to the full Senate floor for debate this spring if it clears committee.
Even Senate Minority Leader Chuck Schumer has signaled eagerness to see progress, underscoring the rare bipartisan momentum behind the broader effort.
Passage of the CLARITY Act would mark a watershed moment, aligning with President Trump’s vision of positioning the United States at the forefront of digital asset innovation.
Clear rules would boost investor confidence, attract capital, and reduce the regulatory uncertainty that has hampered growth.
Failure to deliver before the midterms, however, risks shelving the legislation indefinitely, dealing a significant blow to the sector.
Policymakers on both sides remain cautiously optimistic.
Despite the current standoff, stakeholders from industry and government continue intensive dialogue, determined to find common ground.
With global competitors like Hong Kong preparing to issue its first stablecoin licenses in March and the European Union advancing tokenization reforms, the stakes for swift U.S. action could not be higher.
Elliptic also indicated that the coming weeks will prove pivotal.
If a compromise emerges by early March, the CLARITY Act could reach the President’s desk by summer, ushering in a new era of regulatory clarity for digital assets. Elliptic also suggested that for an industry hungry for certainty, the message from Capitol Hill is seemingly clear: momentum is building, but time is running short.