Banks, Crypto Yet To Agree On New Crypto Bill Draft As March 1 Deadline Looms

The CLARITY Act remains stalled, as the crypto and banking industries have yet to reach a compromise ahead of the March 1 deadline. The talks aim to finalize draft language that would clarify oversight and settle tensions between traditional lenders and digital asset companies.

CLARITY Act: Stablecoin Yield Talks Stall Ahead of Deadline

According to Crypto in America, stablecoin yield negotiations remain unresolved. Representatives from crypto firms and bank groups have met three times, yet no breakthrough has emerged. Sources on both sides said the draft language circulated last week has yet to produce a compromise.

The debate now is on whether activity-based rewards can remain permissible. Reporting indicates yield on idle or passive stablecoin balances is effectively off the table. However, disagreement persists over incentives tied to usage or transactions.

Meanwhile, the White House brought its own legislative draft on the CLARITY Act to closed-door sessions involving Coinbase, Ripple, and a16z, alongside banking groups. Officials reiterated a March 1 internal deadline to unblock Senate progress. Talks around the crypto bill have been described as constructive, yet participants have not announced a final agreement.

Crypto in America also reported that anti-evasion penalties appear in the draft text. As stablecoin issues wind down, attention will shift toward DeFi and ethics provisions. Senate Democratic members plan to meet this afternoon to discuss market structure under the CLARITY Act framework.

Odds Slide as Political Uncertainty Grows

Prediction market odds show the growing uncertainty around the CLARITY Act timeline. Polymarket shows a 51% chance the bill becomes law in 2026, down 14%. Kalshi places the odds of passage before May at 35%.

Source: Polymarket

Sentiment also shifted after President Donald Trump did not mention crypto during his State of the Union address. Meanwhile, broader macro concerns weigh on digital asset markets. Santiment reported that investors view the CLARITY Act as key to defining agency oversight and stablecoin treatment.

Santiment added that the CLARITY Act rules would reduce enforcement uncertainty for banks and large investors. However, lower prediction odds have tempered expectations for immediate clarity. The firm also cited geopolitical tensions and new 15% global tariff disputes as additional pressure on sentiment.

Industry Voices Weigh In on Bill’s Stakes

On X, Satoshi Flipper suggested that a passage alongside easing geopolitical tensions between the U.S. and Iran could boost markets. Separately, 360trader argued that banks could issue stablecoins legally if the bill passes. He cited stablecoin supply reaching $300 billion in 2025 and processing $33 trillion in transactions.

Convicted FTX founder Sam Bankman-Fried said the bill would mark a major milestone for crypto and for Donald Trump. He added that he previously supported similar legislation to limit regulatory authority under former SEC Chair Gary Gensler.

However, banks warn that high-yield stablecoin products could redirect deposit revenue from traditional lenders. Crypto advocates counter that banning rewards on the CLARITY Act would restrict competition. As negotiations continue, both sides await clarity before the March 1 White House deadline.