U.S. Treasury Secretary Scott Bessent has issued a forceful call for Congress to break the legislative gridlock and pass the Digital Asset Market Clarity Act (CLARITY Act) by late spring, warning that further delays could jeopardize America's competitive edge in the global financial system. Speaking to reporters on Friday, Feb. 13, Bessent emphasized that the US crypto market structure bill—currently stalled in the Senate Banking Committee—is critical for establishing clear rules of the road. His comments come just days after a high-stakes White House meeting between top banking executives and crypto leaders failed to resolve a fierce dispute over stablecoin yield regulation.
Bessent’s Spring Deadline: Breaking the Senate Impasse
With the 2026 midterms looming on the horizon, Secretary Bessent is ramping up pressure on lawmakers to finalize the regulatory framework that passed the House last July. "We cannot afford to let another legislative session drift by while innovation moves offshore," Bessent stated, highlighting the administration's goal to cement the U.S. as the "premier destination" for digital assets. The Secretary’s intervention signals a strategic pivot by the Treasury to prioritize the CLARITY Act 2026 as a matter of economic security.
The urgency is palpable. While Senate Banking Committee Chairman Tim Scott (R-S.C.) has championed the bill as a vehicle to make America the "crypto capital of the world," progress has been hamstrung by intense lobbying warfare. The primary sticking point remains the controversial "yield" provisions, which have pitted traditional financial giants against major crypto exchanges like Coinbase and Kraken. Bessent’s timeline suggests the administration expects a markup and floor vote before the Memorial Day recess.
The Core Conflict: Banks vs. Crypto on Stablecoin Yields
The stablecoin yield regulation dispute reached a boiling point earlier this week. On Feb. 10, a White House summit convened by Patrick Witt, Executive Director of the President’s Crypto Council, ended without a breakthrough. Banking representatives, including executives from JPMorgan and Bank of America, presented a document titled "Yield and Interest Prohibition Principles," arguing for a total ban on stablecoin issuers passing rewards to customers.
Their argument is rooted in the fear of deposit flight. Traditional lenders warn that if digital dollar tokens are permitted to offer yield—essentially mimicking interest-bearing savings accounts without the same overhead—banks could lose up to $6.6 trillion in deposits. "If an unregulated tech firm can offer 5% APY on a digital dollar while bypassing capital requirements, Main Street lending collapses," one banking lobbyist noted after the meeting.
Conversely, the crypto industry, represented by the Digital Chamber, fired back on Friday with their own principles. They argue that banning rewards stifles competition and hurts consumers. The industry has offered compromises, such as limiting yields to "rewards" derived from protocol staking or ad revenue rather than direct interest, but the gap between the two sectors remains wide. This stablecoin yield deadlock is the single largest hurdle clearing the path for the CLARITY Act.
Understanding the CLARITY Act: SEC vs CFTC Jurisdiction
Beyond the yield controversy, the Digital Asset Market Clarity Act is widely viewed as the most comprehensive attempt to solve the SEC vs CFTC jurisdiction puzzle. The legislation would finally draw a bright line between digital securities and digital commodities. Under the proposed framework, the CFTC would gain primary oversight over spot markets for decentralized assets (like Bitcoin and Ethereum), while the SEC would retain authority over centralized assets and fundraising schemes.
SEC Chairman Paul Atkins, testifying before the Senate earlier this week, endorsed the bill as a necessary step to "future-proof" the agency's rulebook. "We need a statutory mandate, not just enforcement actions," Atkins said, a marked departure from the previous administration's approach. The bill also includes robust consumer protection mandates, requiring exchanges to segregate customer funds—a direct response to past market failures.
Industry Reaction and Market Outlook for 2026
The market has reacted cautiously to the renewed legislative push. Bitcoin and major stablecoins saw a slight uptick following Bessent's remarks, reflecting optimism that a crypto regulation update 2026 is finally within reach. However, analysts warn that if the yield dispute isn't resolved by April, the bill could be shelved until after the midterm elections.
For now, all eyes are on the Senate Banking Committee. With the Treasury Secretary publicly demanding action and the White House actively mediating, the next few weeks will decide whether the U.S. finally establishes a permanent regulatory home for the digital asset economy or remains in a state of costly ambiguity.
