On February 18, 2026, Senator Bernie Moreno expressed optimism regarding the passage of the Digital Asset Market Clarity Act, commonly referred to as the CLARITY Act. Speaking to CNBC, he stated that the bill could potentially clear Congress by April, contingent upon ongoing negotiations between various stakeholders, including the crypto industry and traditional banking.
The path to legislative approval has been fraught with challenges. The Senate Banking Committee postponed its formal markup of the bill in January, creating uncertainty around its progress. Complicating matters further, Coinbase recently withdrew its support due to disagreements over stablecoin yields and the designation of a primary regulatory agency.
The core issue at the heart of the debate revolves around whether stablecoins should be allowed to offer yields or interest payments to their users. Coinbase CEO Brian Armstrong has argued that U.S. companies need the ability to offer competitive rates to remain viable against international digital currency alternatives. Conversely, traditional banking institutions are concerned that attractive rates on stablecoins could lead to a significant outflow of customer deposits, thereby impacting their lending capabilities.
Discussions aimed at resolving these contentious points intensified at the recent World Liberty Financial crypto forum, where Senator Moreno made his remarks. Reports suggest that the White House is actively mediating between the conflicting parties to reach a consensus.
Armstrong, who had previously retracted support for the legislation, has since indicated that he now sees “a path forward” that could satisfy both the crypto sector and traditional finance. However, the April timeline hinges on negotiators finalizing an agreement soon.
Advisers from the White House, including Patrick Witt, have emphasized that the current delays are hindering the entry of trillions of dollars in institutional capital into the crypto markets. Ripple CEO Brad Garlinghouse has estimated an 80-90% likelihood for the bill”s enactment by late April, provided the yield issue is resolved promptly.
Prediction markets, such as Polymarket and Kalshi, reflected rising optimism, with odds for the bill”s passage peaking around 85% earlier today before settling between 70-80% for a before-June approval. The White House has set March 1 as a critical deadline for reaching an agreement on stablecoin yields, which would enable the Senate Banking Committee to resume its work on the CLARITY Act.
