U.S. "CLARITY Act" Advancement Stalled: Stablecoin Yield Dispute Becomes the Key, Legislative Window Remaining Only a Few Months

March 11 News: The U.S. crypto market structure legislation, the “CLARITY Act,” is currently stalled in the Senate. Disagreements over the yield mechanisms of stablecoins have become the main obstacle. Several senators are attempting to find a compromise, hoping to advance the bill before the 2026 midterm elections.

The “CLARITY Act” is seen as a key component of the U.S. digital asset regulatory framework. The bill was passed with bipartisan support in the House of Representatives in July 2025 and has been sent to the Senate Banking Committee for review. However, before entering committee proceedings, heated debates over whether stablecoins should be allowed to offer interest or rewards have slowed legislative progress.

Banking institutions generally oppose stablecoin yields, arguing that such products could directly compete with traditional bank deposits, leading to outflows of funds from banks. Reports indicate that last week, the banking sector rejected a compromise proposal supported by the White House, which aimed to ease disputes by limiting reward structures. The crypto industry believes that reward mechanisms are common in digital asset markets, and banning them entirely could stifle innovation.

Currently, some senators are discussing new compromise pathways. For example, certain proposals suggest allowing stablecoins to offer limited rewards in payment or trading scenarios while restricting interest on idle funds. However, banks remain cautious about any structures resembling deposit interest rates, so negotiations are ongoing.

Beyond policy disagreements, time pressure is also a significant challenge. If Congress aims to pass the legislation within this session, the “CLARITY Act” must be approved before the November 2026 midterm elections. According to the current schedule, there are only three remaining legislative windows.

The first window is this spring, from March to May. If the Senate can resolve the stablecoin yield issue in the coming weeks, the Banking Committee may schedule a bill review by late March or April, pushing it toward a full Senate vote. However, multiple recesses have compressed the available time, making this the most critical opportunity for advancement.

The second window is June to July, but as lawmakers become increasingly involved in midterm campaigns, legislative priorities may decline. The third window is September, the last possible period before the elections, but passing major financial regulation bills will be significantly more difficult amid tense political environments.

With issues surrounding stablecoin regulation, digital asset market structure, and financial system competition intertwined, the ultimate direction of U.S. crypto legislation remains uncertain. Whether the “CLARITY Act” can be enacted within the limited timeframe will have profound implications for the future of digital asset regulation in the United States.