Key Highlights
- Senate Majority Leader John Thune said that the CLARITY Act will not pass out of the Senate Banking Committee before April, facing another major delay
- While banks are demanding strict limits on yields and incentives for stablecoins, the crypto industry is opposing this demand
- The delay in the regulatory process might raise legal risks for companies
On March 12, Senate Majority Leader John Thune reportedly informed reporter Brendan Pedersen that the Digital Asset Market Clarity Act (CLARITY Act) is not likely to pass out of the Senate Banking Committee before April.
This could add another delay in the progress of the major regulatory framework for the digital asset market and break the hope of millions of crypto users who were expecting it to pass soon.
🚨NEW: Senate Majority Leader @LeaderJohnThune told @BrendanPedersen he doesn’t expect the Clarity Act to pass out of the Senate Banking Committee before April. pic.twitter.com/TGVjHkzWxd
— Eleanor Terrett (@EleanorTerrett) March 12, 2026
The CLARITY Act was passed in July 2025 with a 294-134 bipartisan vote, which is expected to create clear rules for the entire crypto sector by dividing oversight between regulatory agencies. The CFTC regulates digital commodities such as Bitcoin and decentralized tokens, while the SEC will regulate assets that work like securities.
Not just this, this CLARITY Act will also provide clear guidelines for DeFi developers, set rules for exchanges and brokers, and block central bank digital currency surveillance risks.
Stablecoin Rewards Dispute Holds Up Senate CLARITY Act
It has been two months since the Senate has been stopped for months over a single issue, which is stablecoin yield. The main pain point behind this delay is the power struggle between banks and the crypto sector.
Major banks through the American Bankers Association are calling for strict limits on the yields and incentives that are paid on holdings of stablecoins like USDC or USDT.
These banks are arguing that these features could pull deposits away from traditional bank accounts.
In response, crypto companies are saying that the restriction would wipe out consumer benefits and protect banks instead of promoting fair competition.
White House crypto adviser Patrick Witt slammed banks for the delays in the regulatory progress for the crypto sector. He called banks’ demand to turn the CLARITY Act into an “anti-competition bill” shameful and insisted it must remain pro-innovation legislation.
Arguably my favorite part of this rewards/yield debate has been when bankers say “if we allow this, then we’ll see massive deposit flight.”
Crypto has already been offering rewards/yield on stablecoins FOR YEARS.
Where is the deposit flight? Is it in the room with us right now?
— Patrick Witt (@patrickjwitt) March 11, 2026
Patrick Witt said, “Crypto has already been offering rewards/yield on stablecoins FOR YEARS. Where is the deposit flight? Is it in the room with us right now?”
Recently, Senator Angela Alsobrooks urged banks to make a compromise. While speaking at an American Bankers Association summit this week, she said that any deal means “everyone will be a little unhappy.”
Alsobrooks is working with Senator Thom Tillis of North Carolina on language that would block risky passive yield while still allowing activity-based rewards linked to payments and transfers. She affirmed that it is important to protect bank deposits, but the industry can not keep dragging its feet.
Coinbase CEO Brian Armstrong has also publicly criticized the CLARITY Act. He reviewed the Senate draft earlier this year and then announced that he is withdrawing his support, stating that Coinbase “can not support the bill as written.” Armstrong warned that the industry would rather have no bill than a bad one that supports bank interests and restricts stablecoin features.
U.S. President Donald Trump has repeatedly called to accelerate the speed to establish a clear regulatory framework for the crypto sector. With April now the earliest realistic target for committee action, the odds for full approval this year are reducing.
Also Read: Fed Might Fix Basel’s Harsh Bitcoin Penalty in New Proposal
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