White House Crypto Council Executive Director Patrick Witt had set the 1st of March as a deadline for banks and crypto companies to settle their fight over stablecoin rewards.
When the date arrived, though, nothing was announced. No agreement. No clear update.
For many in the industry, that silence raised fresh doubts about whether the Digital Asset Market Clarity Act can move forward or if it will once again stall in the Congress.
CLARITY Act hangs in balance
Sources close to the talks say that the 1st of March deadline was not a strict legal cutoff. It was more of a political tactic to push both sides to compromise.
Negotiations are still happening. Banks and crypto firms are still debating the exact wording of the bill, especially around who controls stablecoin rewards.
Remarking on the same, the source said,
“Overindexing on March 1 is a mistake.”
The Senate Banking Committee is expected to take another look at the CLARITY Act soon. If lawmakers can resolve the remaining disagreements, the bill could finally move toward a full Senate vote.
However, another banking source acknowledged that banks and crypto firms still have key disagreements and have not yet reached full alignment on a deal.
“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.”
Optimism prevails
However, a recent report from JPMorgan Chase says the CLARITY Act could still be a major driver for the crypto market in the second half of 2026.
Analysts believe the bill could pass by mid-year and finally end the current system of “regulation by enforcement,” where companies face legal action instead of clear rules.
With the Senate Banking Committee expected to review the bill again in late March, negotiators are under pressure to settle these issues.
The next few weeks could decide whether the CLARITY Act moves forward or faces another delay.
Amanda Tuminelli, executive director of the DeFi Education Fund, added,
“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.”
Are the odds rising or falling?
Earlier, crypto companies believed the GENIUS Act gave them some protection. They argued that even if stablecoin issuers like Circle could not offer rewards, third-party platforms such as Coinbase could.
However, the Office of the Comptroller of the Currency (OCC) recently pushed back. It suggested that third-party reward programs might still run counter to the intent of the law.
This move has made the legal situation more uncertain for crypto companies.
This uncertainty is also showing up in the markets. On Polymarket, the chances of the CLARITY Act passing in 2026 dropped sharply on the 24th of February, from 72% to 42% in just one day.
Now, as March begins, the odds were around 56%, but then they spiked to 73% within hours.
That suggests the outcome is far from certain. The next Senate review will not only determine the fate of the bill but also influence how the U.S. balances financial stability with crypto innovation in the years ahead.
Final Summary
- Banks fear deposit outflows and financial instability, while crypto firms argue rewards are essential for utility and competitiveness.
- Market sentiment reflects this tension, with Polymarket odds swinging sharply on every development.
