Waiting for it for a long time CLARITY Actwidely seen as the cornerstone of a comprehensive US crypto market structure, failed to meet the March 1 deadline set by the White House two weeks ago.
The administration has called on both the crypto industry and the banking sector to reach common ground for the legislation to move forward. This agreement has not yet been implemented.
Bill hits the crypto “wall of income”.
Representatives from both sectors have held a series of meetings at the White House, often describing the discussions as “constructive.” However, despite this tone, negotiations they met at an important point.
While the Senate Agriculture Committee has approved part of the bill, progress has been slow in the Senate Banking Committee.
The focus is on whether stablecoin issuers should be allowed to offer income or rewards to their holders — an issue that has delayed any markup date for the Banking Committee’s section on the legislation.
The disagreement has fueled speculation that federal regulators could return to a tougher stance on crypto companies if lawmakers fail to strike a deal.
Market Commentary by Paul Barron said the bill effectively hit what he described as a “yield wall,” referring to the deadlock from stablecoin rewards. He noted that the crypto industry is pushing for the right to provide stablecoins with regulated income, and argued that without that flexibility, the US risks driving innovation offshore.
If no deal is reached, Barron’s suggested the likely outcome would be continued “executive regulation” from agencies such as the Securities and Exchange Commission (SEC) and the Office of the Comptroller of the Currency (OCC).
On the other hand, an average solution – for example, limited stablecoin yield to qualified investors – can unlock significant institutional capital.
This possibility is in line with forecasts by JPMorgan, which predicted effective institutional inflows into digital assets in the latter half of 2026, if regulatory clarity improves.
Institutional speed under the CLARITY Act
JPMorgan analysts led by Nicholas Panigirtzoglou have described the possible passage of the CLARITY Act as a turning point for the crypto market.
according to to report from market expert MartyParty, the bank sees the bill not as a minor regulatory fix, but as a structural overhaul of the US digital asset framework.
In a recent research note, JPMorgan noted three interrelated effects that could follow after the bill’s approval. First, it would end the current dependence on coercive actions as the main method of control, replacing uncertainty with certain rules.
Second, it can shift institutional engagement with crypto from speculative exploration to high-trust engagement. Third, it can accelerate tokenization real assets (RWAs), the tendency of many financial institutions to develop cautiously.
New negotiations in the Senate are expected to resume in April 2026, with July 2026 being seen as an unofficial deadline before the election period begins to dominate the legislative agenda and reduce the likelihood of major policy breakthroughs.
Featured image from OpenArt, chart from TradingView.com
Editing process because bitcoinist is committed to delivering thoroughly researched, accurate and unbiased content. We adhere to strict sourcing standards and every page is rigorously reviewed by a team of top technology experts and experienced editors. This process ensures the integrity, relevance and value of our content to our readers.
