After months of negotiation, U.S. lawmakers may be approaching a breakthrough on long-awaited crypto market structure reform.
U.S. Senator Bernie Moreno (R-Ohio) stated that the Digital Asset Market Clarity Act, widely known as the CLARITY Act, could pass Congress “hopefully by April.” Speaking at the World Liberty Forum in Florida, Moreno emphasized that lawmakers have roughly a 90-day window to finalize compromises before attention shifts toward the 2026 midterm elections.
Where the Bill Stands
The CLARITY Act is designed to define regulatory jurisdiction between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).
The House passed its version of the bill in mid-2025. However, the Senate version stalled in January 2026 due to disagreements within the industry, particularly around stablecoin yield provisions and decentralized finance (DeFi) rules.
Recent negotiations appear to be narrowing those gaps. Coinbase CEO Brian Armstrong, who had previously withdrawn support for an earlier draft, has now reengaged and described the latest talks as moving toward a “win-win-win” compromise for crypto firms, banks, and consumers.
A White House-hosted roundtable on February 19 is focused on resolving one of the most contentious issues: whether centralized platforms can offer interest or yield on stablecoin balances. Traditional banks have opposed such rewards, arguing they could drain deposits from the banking system.
Market Expectations Surge
Political optimism has quickly spilled into market expectations.
On Polymarket, the probability of the CLARITY Act passing in 2026 jumped to 90% immediately following Moreno’s comments before stabilizing around 72%. Some analysts estimate roughly an 80% chance the bill reaches President Trump’s desk by the end of April if current disputes are resolved by late February.
That shift in sentiment reflects growing confidence that regulatory clarity may finally replace years of uncertainty.
Key Provisions Under Discussion
Several structural elements remain central to negotiations:
- Asset classification: Clear definitions distinguishing digital commodities from digital asset securities.
- Mature blockchain framework: A pathway for decentralized networks to transition from SEC oversight to CFTC supervision.
- Stablecoin rules: Reserve requirements and guidance on yield-bearing stablecoin products.
- Self-custody protections: Explicit affirmation of individuals’ rights to hold and transfer digital assets independently.
If passed, the CLARITY Act would mark one of the most significant regulatory milestones in U.S. crypto history, shifting the framework from enforcement-driven ambiguity to statutory clarity.
For now, lawmakers appear aligned on urgency. The next few weeks may determine whether momentum turns into law.
