The White House pushed for a breakthrough in stablecoin yield negotiations for the CLARITY Act this weekend. This did not happen. Instead, new reports from sources close to the negotiations suggest that the Crypto Market Structure Bill remains far from a final deal.
Banking industry representatives and crypto lobbyists are still divided on whether stablecoins can generate revenue for users. This dispute continues to block progress in the Senate.
The CLARITY law is far from being a resolution?
According to Eleanor Terrett, banking industry sources described the negotiations bluntly. A draft text exists, but the parts are “not close”.
🚨NEW: Many in the crypto industry have come to the defense of @patrickjwitt and the White House following comments from an anonymous source claiming to be directly involved in stablecoin yield negotiations.
I shared the Crypto Twitter post and reaction with a banking source…
– Eleanor Terrett (@EleanorTerrett) February 27, 2026
Other banking industry trade groups pushed back against claims that the negotiations would collapse, saying discussions were ongoing and contributions to the draft text were continuing.
This divided narrative reflects how fragile the negotiations have become.
Where is the bill now?
The House passed the CLARITY Act in July 2025 with bipartisan support. The bill seeks to define when digital assets fall under SEC oversight and when they are considered commodities under the CFTC. It also establishes registration rules for stock exchanges, brokers and customs.
After being approved by the House, the bill was transferred to the Senate Banking Committee. There, it stalled.
No marking has been done. No indoor voting is planned.
The bill remains stuck in committee.
If there is no agreement, the language of Genius controls, which is broader than that.
The banks are putting themselves against the wall.
— Austin Campbell (@austincampbell) February 27, 2026
Stable wedge yield is the hot spot
The bill originally focused on regulatory clarity between the SEC and CFTC. But in early 2026, the fight shifted to stablecoins.
Senate negotiators have presented draft text that would restrict interest or payments tied to stablecoin holdings. Banks support stricter limits. They argue that yield-producing stablecoins could function like unregulated bank deposits.
The CLARITY law has just changed. The Senate amendment adds more power to the SEC, more disclosures, stricter stablecoin rules and DeFi oversight.
Coinbase has already opposed this version ❌ pic.twitter.com/XH0RB3XN7w
– BeInCrypto (@beincrypto) January 14, 2026
Crypto companies strongly oppose this view. Coinbase CEO Brian Armstrong has publicly argued that stablecoins can generate returns responsibly and that banning rewards would harm innovation.
This disagreement now threatens the broader framework of market structure.
Pressure from the White House, but no breakthrough
The White House has convened meetings between banks and crypto companies in recent weeks. Officials would have liked to have an agreement on performance before March.
However, sources say key terms remain up in the air.
🔥I just heard from my sources in DC: the White House is now relying on the banks, and the banks hold the CLARITY Act accommodation. They continue to want to ban stablecoin yield because they are afraid of competition. 🏦🛑 I expect them to give in soon.
Banks have already lost billions because of… pic.twitter.com/tWHbZmE9h7
– PaulBarron (@paulbarron) February 20, 2026
Banking trade groups such as the American Bankers Association and the Independent Community Bankers of America have reportedly rejected claims that the negotiations will fail. There is still no finalized text.
What is still not resolved
Four fundamental questions remain:
- Are stable rewards considered prohibited interests?
- How to strongly limit trade incentives
- The final boundary between SEC and CFTC authority
- The scope of DeFi developers’ obligations
Until the rules on returns are resolved, broader reforms to market structure cannot move forward.
When will the CLARITY Act be passed?
The next key step is a markup from the Senate Banking Committee. No date has been announced.
If negotiators narrow their differences in March, a committee vote could follow later in the month. If negotiations drag on, the bill risks sinking even deeper into election-year politics.
For now, the CLARITY Act remains in effect – but at a standstill.
The question is no longer whether Congress wants crypto rules. It’s about whether banks and crypto companies can agree on who controls the stablecoin economy.
The post CLARITY Act Still Faces Pressure From Banks as Yield Fight Blocks Deal appeared first on BeInCrypto.
