With the end of the month approaching and negotiations still ongoing, the long-debated crypto market structure legislation known as the CLARITY Act is facing a critical moment in Washington.
The bill, which aims to establish clear rules for digital asset markets in the United States, has encountered significant obstacles in recent weeks as lawmakers, regulators, banks and crypto industry representatives continue to debate key provisions.
Despite the hurdles, newly appointed Commodity Futures Trading Commission (CFTC) Chair Mike Selig has expressed strong confidence that the legislation is close to becoming law.
CFTC Chief Optimistic On CLARITY Act
In an interview with FOX Business on Tuesday, Selig said the bill is “about to” be signed, signaling optimism that Congress will ultimately push it across the finish line.
“We want to ensure that the legal framework for cryptocurrencies is adaptable to future developments. We cannot allow a second Gary Gensler to come in and destroy everything. We’re going to get this thing across the line,” he added.
Selig’s remarks build on statements he made earlier this month. On February 3, he argued that the market structure bill moving through Congress could position the United States as the “gold standard” for crypto regulation.
According to Selig, the industry has operated for too long without clear guidelines, causing businesses and innovation to migrate offshore. “The goal [of this legislation] is just to get some clarity.
It’s been too long with these markets just languishing, and they’ve fled offshore,” he said at the time. He also projected that a finalized bill could land on President Donald Trump’s desk “in the next couple of months,” praising the president’s leadership and support for the cryptocurrency sector.
However, as the White House’s end-of-month deadline looms, a major sticking point remains unresolved: whether stablecoins should be permitted to offer yield.
Crypto, Banks Remain Divided On Stablecoin Rewards
Journalist Eleanor Terrett reported Monday for Crypto In America that discussions between the crypto and banking industries have yet to produce a compromise on the issue, which is widely seen as the linchpin for advancing the CLARITY Act.
Last Tuesday, policy staff from banks and crypto firms met at the White House. The meeting concluded without agreement after banking representatives circulated a one-page document titled “Yield and Interest Prohibition Principles,” which argued that stablecoins should not provide yield or rewards to holders.
In response, the Digital Chamber, a trade group representing more than 130 crypto firms and several traditional banks with digital asset exposure, released its own proposed framework on Friday.
The organization suggested principles that would allow payment stablecoins to generate yield within decentralized finance (DeFi) systems.
The group said its recommendations are intended to preserve stablecoins as payment tools, safeguard DeFi liquidity and reinforce US dollar dominance, while introducing a rigorous, data-driven method to assess potential impacts on bank deposits.
Banks have not formally responded to the Digital Chamber’s proposal. However, a source close to the Senate Banking Committee described the document to Crypto In America as “constructive,” though cautioning that some elements may be too broad to gain full support from financial institutions.
The next steps remain uncertain. Patrick Witt, executive director of the White House Crypto Council, told Yahoo Finance on Friday that another meeting could take place as early as this week, though no specific date was provided.
Featured image from Openart, chart from TradingView.com
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