The cryptocurrency industry’s most anticipated piece of legislation faces mounting challenges in the U.S. Senate, with the CLARITY Act remaining gridlocked despite strong House support. The comprehensive crypto market structure bill, which sailed through the House of Representatives with a decisive 294-134 bipartisan vote in July 2025, has encountered significant headwinds in the upper chamber.
Armstrong Maintains Optimistic Outlook
Coinbase CEO Brian Armstrong struck a confident tone during his Wednesday appearance on CNBC at the World Liberty Forum, expressing unwavering belief that lawmakers will ultimately craft legislation benefiting all stakeholders. Speaking from Mar-a-Lago, Armstrong characterized the potential outcome as a “win-win” scenario that would serve the crypto industry, traditional banking sector, and American consumers alike.
“There is now a path forward,” Armstrong declared, positioning the legislation as crucial for establishing regulatory clarity while bolstering America’s competitive position in the rapidly evolving digital asset landscape. His comments come as Bitcoin maintains its position above $94,000, with the broader cryptocurrency market capitalization holding steady near $3.4 trillion.
Legislative Timeline and Senate Roadblocks
Following its House passage, the CLARITY Act was formally referred to the Senate Committee on Banking, Housing, and Urban Affairs in September 2025, where it has remained without floor consideration. The legislation’s momentum faced a significant setback when planned committee markups scheduled for January 15 and January 27, 2026, were either canceled or postponed indefinitely due to industry pushback and internal legislative disputes.
In a parallel development, the Senate Agriculture Committee advanced portions of the Digital Commodity Intermediaries Act (S. 3755) in late January through early February, though this progress occurred along strict party lines and has not resolved the broader regulatory impasse affecting comprehensive market structure reform.
Stablecoin Yield Emerges as Central Battleground
The debate over stablecoin yield mechanisms has crystallized as the legislation’s primary flashpoint, with Senator Bernie Moreno of Ohio firmly opposing the inclusion of reward structures for stablecoin holders. During his CNBC interview, Moreno suggested that concerns about stablecoin yields should primarily affect banking institutions, arguing that increased competition for consumer deposits would ultimately benefit the public.
Despite the ongoing tensions, Senator Moreno expressed confidence in eventual legislative success, stating, “We are going to get this bill across the finish line,” while expressing hope for resolution by April 2026. His timeline would align with the traditional legislative calendar before potential summer recess considerations.
Industry Perspective on Competitive Landscape
Armstrong has consistently advocated for stablecoin reward mechanisms as essential infrastructure for domestic market development. “To build the stablecoin industry in America, we have to have stablecoin rewards,” he emphasized, highlighting the competitive necessity of such features in the global marketplace.
The Coinbase executive noted growing acceptance among traditional financial institutions, particularly highlighting partnerships with forward-thinking banks that are “leaning into crypto.” This institutional adoption trend has contributed to stablecoin market capitalization reaching approximately $190 billion, with Tether (USDT) commanding roughly $140 billion and USD Coin (USDC) holding about $40 billion in market value.
Innovation Imperative and Global Competition
Armstrong framed the regulatory discussion within broader themes of American competitiveness and innovation leadership. “America has never been one to be stagnant and protect the incumbents,” he stated, emphasizing the nation’s historical success through adaptation rather than protectionism.
His remarks underscore growing concerns about international competition, particularly as jurisdictions like the European Union advance their Markets in Crypto-Assets (MiCA) regulation and Asian markets continue developing comprehensive digital asset frameworks. The urgency is reflected in trading volumes, with daily spot Bitcoin trading often exceeding $30 billion across global exchanges.
White House Intervention Signals High-Level Priority
Recent reports indicate that the White House is considering convening another high-level meeting as early as Thursday to specifically address the stablecoin yield impasse, demonstrating continued executive branch engagement with the legislative process. This potential intervention suggests recognition of the issue’s significance for broader financial market stability and innovation policy.
The administration’s involvement comes as regulatory clarity remains a critical factor for institutional crypto adoption, with traditional finance giants like BlackRock and Fidelity having launched Bitcoin ETFs that now hold combined assets exceeding $60 billion.