Latest Developments in the Clarity Act Crypto February 2026

The Clarity Act remains at the centre of US crypto regulation in February 2026, as lawmakers attempt to finalise a clear market structure framework before election pressures intensify. 

Although the House passed the bill in 2025, it is currently stalled in the Senate due to disagreements over stablecoin reward provisions, leaving investors and digital asset firms watching closely for signs of compromise.

Key Takeaways

• The Clarity Act is delayed in the Senate over stablecoin reward rules
• The White House is mediating discussions between banks and crypto firms
• Passage would clarify SEC and CFTC oversight of digital assets

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Why the Clarity Act Is Delayed

The primary obstacle in February 2026 is the treatment of stablecoin rewards. Under the GENIUS Act, stablecoin issuers are prohibited from paying interest directly to holders. However, the legislation does not explicitly prevent exchanges or platforms from offering rewards linked to stablecoin balances.

Banking groups argue that permitting such rewards could draw deposits away from traditional banks, potentially affecting lending capacity and financial stability. They believe stablecoins should function strictly as payment instruments rather than interest bearing alternatives to savings accounts.

Crypto firms counter that banning platform rewards would restrict competition and innovation. They argue that exchanges are not banks and should not be subject to identical constraints. 

This disagreement led the Senate Banking Committee to postpone its markup session earlier this year, effectively freezing progress on the bill.

Read Also: Coinbase Thinks New US Tax Rules Could Boost Crypto Prediction

White House Mediation and Legislative Pressure

In response to the deadlock, the White House hosted meetings in early February with representatives from both the banking and crypto sectors. The goal is to reach a practical compromise before the end of the month so that committee discussions can resume.

Political timing adds urgency. With midterm elections approaching, legislative bandwidth is narrowing. Although there is bipartisan recognition of the need for clearer crypto regulation, Senate passage requires cross party cooperation to overcome procedural thresholds. 

Public statements from policymakers suggest cautious optimism, but a final agreement on stablecoin rewards remains the decisive factor.

Read Also: GENIUS Act's Impact on U.S. Crypto Leadership

What the Clarity Act Would Change

If enacted, the Clarity Act would formally divide regulatory authority between the SEC and the CFTC. Digital commodities would fall under CFTC oversight, while investment contract assets would remain under SEC jurisdiction. 

The bill also provides clearer registration pathways for exchanges, brokers and other intermediaries.

By defining categories such as digital commodities and establishing criteria for decentralisation, the legislation aims to reduce regulatory uncertainty and support long term compliance. However, it does not cover every aspect of crypto policy. 

Stablecoin issuer licensing is governed by separate law, and tax treatment of digital assets remains outside its scope. Even so, the Act would represent a significant structural reform in US crypto oversight.

Read Also: White House to Release Comprehensive Crypto Policy

Conclusion

February 2026 marks a critical stage in the Clarity Act debate. While there is broad support for clearer digital asset regulation, the unresolved dispute over stablecoin rewards continues to delay Senate progress. 

Lawmakers face growing time constraints, and the coming weeks will determine whether compromise is possible. If agreement is reached, the United States could move closer to a stable and predictable regulatory framework for crypto markets. If not, uncertainty is likely to persist.

FAQ

What is the Clarity Act

It is proposed US legislation designed to clarify whether digital assets are regulated by the SEC or the CFTC.

Why is the bill stalled

The Senate is divided over whether crypto platforms should be allowed to offer rewards on stablecoin balances.

Does the Act ban stablecoins

No. The bill focuses on market structure and regulatory jurisdiction rather than prohibiting stablecoins.

Why is regulatory clarity important

Clear rules can reduce legal uncertainty, improve investor confidence and support responsible innovation.

When could the Act pass

Passage depends on a compromise over stablecoin rewards, with lawmakers aiming to make progress in 2026.

Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency investments involve risk, and regulatory outcomes may change. Always conduct independent research before making financial decisions.