US crypto regulation advances as clarity act shapes stablecoin rules and banking ties

US lawmakers are accelerating work on the clarity act, a flagship crypto regulation package that could redefine the industry while reshaping relations between stablecoins and banks.

Senator Moreno targets April for congressional approval

The US CLARITY Act could clear Congress by April, according to Senator Bernie Moreno, who outlined an ambitious timeline on February 19, 2026. The proposal seeks to deliver a unified rulebook for the cryptocurrency sector, with particular emphasis on market structure, stablecoins, and banking integration.

Moreno noted that negotiations between crypto firms, traditional banks, and lawmakers have intensified in recent weeks. Moreover, the talks are now focused on bridging final gaps around stablecoin rewards, regulatory oversight, and how banks will compete with on-chain yield products.

Coinbase CEO Brian Armstrong confirmed that dialogue with Congress and the banking sector has been productive. However, he acknowledged that outstanding issues around interest-bearing stablecoins and supervisory authority still require careful drafting before a final vote.

Market expectations and committee pressure

Prediction platform Polymarket briefly priced the probability of passage at 90 percent before revising it to 72 percent. That adjustment reflects both optimism about progress and lingering uncertainty over final compromises.

Moreno stressed that disputes over stablecoin yield slowed earlier momentum but do not threaten the bill’s ultimate approval. Moreover, the powerful Senate Banking Committee is reportedly meeting on an almost daily basis to fast-track the text and manage last-minute amendments.

According to the senator, this pace of internal meetings signals that leadership views the package as a priority for US crypto regulation. That said, the final language will determine how responsibilities are divided between agencies and how quickly new rules reach implementation.

Stablecoin rewards and banking integration under scrutiny

The clarity act sits at the center of a broader clash between stablecoin yield programs and traditional banking models. Banks argue that interest-bearing stablecoins could siphon off deposits, weakening their ability to fund conventional lending and potentially altering credit conditions across the economy.

Lawmakers are therefore searching for compromises that preserve innovation while protecting overall banking stability. Moreover, they must ensure that any guardrails on yield products do not push activity offshore or into less regulated markets, which would undermine the bill’s consumer-protection goals.

Armstrong had previously criticized draft language that would ban interest-bearing stablecoins and give the SEC primary oversight. However, he has since indicated that a workable resolution is possible, allowing the clarity act to serve both banks and crypto firms through more balanced supervisory arrangements.

Negotiators are now reportedly working through a narrow set of remaining technical and regulatory details. That said, Moreno and other supporters argue that the core political agreement around stablecoins, banks, and market structure is already in place.

Industry growth and consumer protections in focus

The bill’s momentum highlights a new phase of cooperation between Congress, financial institutions, and crypto companies. Stablecoins remain at the heart of these talks because they underpin both everyday retail payments and institutional settlement strategies across trading venues.

Moreno has repeatedly said that discussions are designed to balance sector growth with strong consumer protections. Moreover, policymakers want to avoid a framework that either stifles legitimate innovation or leaves users vulnerable to opaque products, particularly where yield-bearing stablecoins intersect with banking-like activities.

In practice, that means the clarity act must clarify how custodial duties, disclosure standards, and prudential requirements apply across different types of issuers. However, it must also leave room for new products that could expand on-chain finance while fitting within existing safeguards.

Congressional outlook and political backdrop

Senator Moreno expects the CLARITY Act to move through Congress by April without significant partisan resistance. He dismissed concerns that a Democratic-led midterm shift could derail the process, arguing that support now crosses traditional party lines in both chambers.

Congressional leaders are working to align the final text with President Trump‘s broader crypto agenda. Moreover, the White House has consistently backed the initiative as part of a strategy to position the United States as a global hub for digital assets, including stablecoins and tokenized financial products.

Previous setbacks, such as Coinbase withdrawing early support, have been addressed through continued negotiations and targeted revisions. That said, the durability of this consensus will be tested as the bill approaches floor votes and potential amendments.

Toward a new framework for US crypto markets

Observers note that the Senate Banking Committee has clearly prioritized the package, holding frequent internal sessions and ongoing consultations with industry stakeholders. Moreover, passage would mark a significant precedent for how the United States approaches comprehensive rules for digital asset markets.

The legislation is crafted to define a regulatory framework intended to benefit banks, crypto firms, and American consumers simultaneously. The clarity act is also expected to sharpen boundaries between various financial regulators, reducing overlap and uncertainty while clarifying who oversees different classes of digital assets.

Moreno remains confident that the bill will clear Congress on the projected April schedule. However, final outcomes around stablecoin yields, banking integration, and supervisory authority will determine how far the law reshapes US digital asset markets and long-term industry growth.

In summary, the CLARITY Act’s rapid progress, intense negotiations over stablecoin rewards, and daily committee activity suggest that the United States is moving toward a more coherent crypto rulebook that seeks to align innovation, financial stability, and consumer protection.