The future of the CLARITY Act — widely referred to as the crypto market structure bill — remains uncertain after the March 1 deadline set by the White House passed without the expected breakthrough between the banking industry and crypto representatives.
Key Hurdle In Crypto Bill Negotiations
Despite concerns that talks may be stalling, reporting from Crypto In America suggests discussions are continuing behind the scenes. Eleanor Terrett cited a banking industry source with direct knowledge of the negotiations who pushed back on the idea that the process is unraveling.
According to that source, both sides are still actively reviewing and contributing to draft legislative language and were never strictly bound to the March 1 timeline. “Overindexing on March 1 is a mistake,” the source said.
Still, tensions remain. Another banking source acknowledged that while there is broad agreement in principle that stablecoin balances should not earn interest, disagreements persist over how that principle should be implemented.
According to this source, crypto companies are attempting to structure alternative mechanisms — such as membership programs, rewards systems, or staking arrangements — that could effectively replicate annual percentage yields (APY) on stablecoin holdings. The source said:
There’s agreement in-principle that stablecoin balances shouldn’t earn interest, but crypto firms are still trying to backdoor APY on balances through membership programs, rewards, and staking. I think that’s what’s holding up the deal right now.
Bank representatives are reportedly pushing for any lending or staking activity to be clearly defined as “active,” “bona fide,” and “time-locked,” meaning returns must be tied strictly to genuine investment performance rather than resembling passive interest.
Senate Banking Eyes March Markup
On Capitol Hill, attention is turning to procedural milestones. The Senate Banking Committee is reportedly considering potential markup dates in mid-to-late March.
Such a timeline would give negotiators several additional weeks to address unresolved matters, including decentralized finance (DeFi) provisions and ethics-related concerns, before the bill advances to a possible vote.
Amanda Tuminelli, executive director of the DeFi Education Fund, said DeFi discussions have recently taken a backseat to the yield dispute but described the broader process as progressing. She further noted:
I think overall things are moving, and it feels like issues are being closed out, but DeFi has taken a backseat to the yield conversation. We’re waiting for Senate Banking to announce the next markup date and updated text, so I think everyone is anxiously awaiting to see what the next draft looks like.
For now, the path forward hinges on resolving the stablecoin yield dispute and finalizing legislative language that can satisfy enough stakeholders to move ahead.
Featured image from OpenArt, chart from TradingView.com
