The debate over the CLARITY Act is still not settled. Patrick Witt who serves as Executive Director of the White House Crypto Council had marked the first of March as a key date. He wanted banks and crypto companies to resolve their dispute over stablecoin rewards by then. When that day arrived there was no announcement. There was no deal and no clear update.


This silence created fresh doubt across the crypto space. Many people are now asking if the Digital Asset Market Clarity Act will move forward or face another delay in Congress.


Sources close to the talks say the first of March was never a strict legal deadline. It was more of a way to push both sides toward compromise. Discussions are still ongoing. Banks and crypto firms are still debating how the bill should define control over stablecoin rewards.


One major issue is whether stablecoin balances should earn interest. There seems to be basic agreement that these balances should not directly pay interest. However banks believe some crypto firms are trying to offer similar benefits in other ways. These may include membership perks reward programs or staking models that provide yield. Banks see this as going against the spirit of the rule. This disagreement is slowing down progress.


The United States Senate Committee on Banking Housing and Urban Affairs is expected to review the CLARITY Act again soon. If lawmakers can solve the remaining problems the bill could move toward a full Senate vote. Still people involved in the talks admit that full agreement has not been reached yet.


Despite the tension there is some optimism. JPMorgan Chase recently shared a report saying the CLARITY Act could become a strong driver for the crypto market in the second half of 2026. Analysts believe the bill might pass by mid year and finally replace what many call regulation by enforcement. Right now many crypto companies face lawsuits instead of clear rules. A new law could bring more certainty.


Amanda Tuminelli from the DeFi Education Fund said that talks are still moving forward. She noted that the focus has shifted more toward the yield debate while decentralized finance topics are getting less attention. Many people are waiting to see the next draft of the bill and the date of the next review.


Earlier some crypto companies believed the GENIUS Act gave them protection. They argued that even if stablecoin issuers could not offer rewards third party platforms might still do so. However the Office of the Comptroller of the Currency recently signaled that third party reward programs might not fit the intent of the law. This added more uncertainty.


This uncertainty is also visible in prediction markets. On Polymarket the odds of the CLARITY Act passing in 2026 dropped sharply on the twenty fourth of February. They fell from seventy two percent to forty two percent in one day. As March began the odds moved around again and even jumped within hours. This shows how divided opinions remain.


At the center of this issue is a basic conflict. Banks worry that stablecoin rewards could pull deposits away from traditional accounts and affect financial stability. Crypto firms argue that rewards are important for user growth and competition.


The next Senate review will be important. It may decide whether the CLARITY Act finally moves ahead or faces another pause. The result will shape how the United States handles crypto rules in the coming years.

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