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During this weekend, **The White House called for a breakthrough on stablecoin yield negotiations for the CLARITY Act to be achieved. But it was not the case of . In contrast, fresh reports by the sources close to the talks suggest that the crypto market structure bill remains a long way from completing ‘final deal’. ** ** .
The question of whether stablecoins can produce yield for users is still disputed by banking representatives and crypto lobbyists. The Senate continues to block progress in that dispute, which still blocks those moves by that controversy.
The CLARITY Act Nowhere Near a Resolution?
According to Eleanor Terrett, banking-side sources described the negotiations bluntly. Draft language exists, but the sides are “not close.”
NEW Lots of crypto industry people jumping to defend @patrickjwitt and the White House after comments from an anonymous source claimed that they were directly involved in the stablecoin yield talks.
Eleanor Terrett (@EleanorTerrett) February 27, 2026
Other banks backed back on claims the talks are collapsing, saying discussions are ongoing and input on draft text is still going on.
The split narrative reflects how fragile the negotiations have become.
Where the Bill Stands Now
On June 20, 25, with bipartisan support for the CLARITY Act, the House passed it. It seeks to define when digital assets are under SEC control and when they qualify as commodities under the CFTC. It also sets up registration rules for exchanges, brokers and custodians.
After clearing the House, the bill moved to the Senate Banking Committee. There, it stalled.
No markup has been completed. No floor vote is scheduled.
The legislation remains stuck in committee.
If there is no deal, the language in Genius controls, which is broader than this.
Austin Campbell (@austincampbell) February 27, 2026
Stablecoin Yield Is the Flashpoint
The original bill was concerned with regulatory clarity between the SEC and CFTC. In early 2026, however, the conflict became a battle of stablecoins.
Draft language, which would limit interest or yield payments tied to stablecoin holdings, was introduced by Senate negotiators. There are tighter restrictions on banks’ support for . They argue that yield-bearing stablecoins could be similar to unregulated bank deposits, and may work like ‘unregulated’ banks.
The CLARITY Act just changed > > A Senate amendment also adds more SEC power, greater disclosures, tighter stablecoin rules and DeFi oversight.
Coinbase has already opposed this version ❌ pic.twitter.com/XH0RB3XN7w
BeInCrypto (@beincrypto) January 14, 2026
The firm of crypto companies strongly opposes that view. Earlier, Coinbase CEO Brian Armstrong has publicly stated that stablecoins can produce yield responsibly and that banning rewards would harm innovation.
That disagreement now threatens the broader market structure framework.
White House Pressure, But No Breakthrough
In the past weeks, banks and crypto companies have met at the White House to meet with their respective counterparts in a series of meetings called “the White house”. Prior to March, officials said they wished for an agreement on yield before the deal was sought.
However, sources say key language remains unresolved.
‘I heard from my DC sources The White House is now leaning on banks, and the banks are holding the CLARITY Act hostage. But they’re still fighting to ban stablecoin yield because they fear competition. I think they will cave soon,’ .
Banks have already lost trillions to… pic.twitter.com/tWHbZmE9h7
PaulBarron (@paulbarron) February 20, 2026
The claims that negotiations are collapsing have been reportedly rejected by bank trade groups including the American Bankers Association and the Independent Community Banker of America. There is no finalized text, however, of any .
What Is Still Unresolved
Four core issues remain:
- Whether stablecoin rewards count as prohibited interest
- How sharply to limit exchange incentives
- The final boundary between SEC and CFTC authority
- The scope of obligations for DeFi developers
Until yield language is settled, broader market structure reforms cannot move forward.
When Will the CLARITY Act Pass?
The next key step is a Senate Banking Committee markup. No date has been announced.
After the month of March, if negotiators narrow differences in March it could be later on committee vote that would follow. If talks go on, the bill risks slipping deeper into election-year politics as it enters elections.
For now, the CLARITY Act remains alive but stalled.
Congress has no longer wished for crypto rules, the question is now asked whether it would be an issue to ask for encryption. Banks and crypto firms can decide who controls stablecoin economics, it is.
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