Bernie Moreno confirmed this February 19 that the CLARITY Act will reach its final approval in April 2026, according to statements at his press office. The project seeks to regulate stablecoins and their banking integration after recording a success probability of 72 percent in specialized prediction markets this same Thursday.
Legislative urgency responds to the need to establish a fair competitive framework for traditional banks. Since yield-bearing stablecoins could drain significant deposits, regulators seek to balance financial innovation with the stability of the system national. This intensive dialogue between firms and banks will allow defining the rules of the game for the next economic decade.
Consensus on federal oversight for the digital asset sector
The Senate Banking Committee maintains daily meetings to finalize the technical language regarding asset custody. Despite initial challenges, Moreno ensures that bipartisan support is strong enough to move forward without major parliamentary setbacks. The goal is to create an environment where companies operate with total transparency under supervision of competent federal agencies.
The integration of these assets into the sovereign debt market is evident when analyzing the updated Treasury operations. This correlation demonstrates that stablecoins act as strategic buyers of federal government bills in times of uncertainty. Therefore, the legal validation of these instruments will strengthen the dollar’s position on decentralized networks globally permanently.
The bill text establishes strict one-to-one reserve requirements for permitted issuers. By requiring backing to consist exclusively of cash and equivalent assets, the government seeks to prevent systemic liquidity crises in the sector. This regulation ensures that stable cryptocurrencies function as an efficient and secure means of payment for all US citizens soon.
From a historical perspective, the current regulatory cycle shares similarities with the Dodd-Frank Act after the 2008 crisis. However, the fundamental difference lies in that this legislation seeks to promote proactive growth of the sector private. Lawmakers have learned that banning these technologies only shifts capital toward markets abroad that lack adequate protections for the final consumer.
Will the new legal framework resolve the controversy over on-chain yields?
Brian Armstrong, CEO of Coinbase, has noted that dialogue with lawmakers has been extremely productive recently. However, the debate over whether to allow direct rewards to users remains the point of greatest friction in the final technical negotiations. The industry expects that sufficient operational flexibility will be allowed to foster growth of the domestic private sector without excessive restrictions.
Banks argue that allowing yields without the same regulatory burdens would create an unfair advantage for tech companies. Nonetheless, stablecoin firms defend that these rewards are essential to attract liquidity and efficiency operational. The final compromise will likely include specific limits on the marketing of these yields as products of traditional bank savings in the retail market.
The maturation of the stablecoin market has surpassed the settlement volumes of conventional credit card networks. This massive processing capacity is what has forced Congress to act with an unusual celerity recently. By integrating these flows into the regulated financial system, the United States intends to lead the payments infrastructure of the immediate future without losing monetary hegemony.
The structural impact of the CLARITY Act will also affect how federal agencies collaborate with each other. The division of responsibilities between the SEC and the CFTC will reduce the judicial harassment that has characterized the sector recently. This administrative order will provide a solid foundation for banks to begin custodying digital assets massively and in a regulated manner.
The approval horizon in April represents an unprecedented milestone for the maturity of the digital financial industry. As the vote approaches, markets will closely monitor the latest changes in the wording of the legislative text. The consolidation of these rules will mark the beginning of an era of greater integration between traditional banking and the global tokenized economy.
