Has the Clarity Act passed? | The 2026 Status Report

Current Legislative Status

As of early 2026, the Digital Asset Market Clarity Act of 2025, often referred to simply as the Clarity Act, has not been enacted into law. While the bill successfully passed the House of Representatives in July 2025 with a bipartisan vote of 294 to 134, its progress has since stalled in the Senate. The legislation was designed to provide a comprehensive regulatory framework for the United States digital asset market, but it has encountered significant political and structural obstacles that have prevented it from reaching the President's desk for a final signature.

The bill's journey through the 119th Congress has been marked by intense debate. After its successful House passage, the Senate Banking Committee and the Senate Agriculture Committee took up the mantle. However, scheduled hearings have been repeatedly postponed, and the much-anticipated markups have faced delays. While proponents argue the act is essential for keeping innovation within the United States, critics and various lobbying groups have raised concerns that have effectively paused the legislative momentum as of February 2026.

The Core Objectives

The Clarity Act was introduced with the primary goal of ending the "regulation by enforcement" approach that has characterized the U.S. crypto landscape for years. It seeks to establish clear functional requirements for market participants, prioritizing consumer protection while fostering technological growth. By creating a definitive legal structure, the act aims to restore confidence in the American regulatory environment and prevent digital asset businesses from migrating to more crypto-friendly jurisdictions like Europe or Latin America.

Defining Regulatory Jurisdictions

One of the most critical components of the Clarity Act is the establishment of a "bright line" between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). Historically, the lack of clarity regarding which agency oversees specific assets has led to numerous legal battles. The act proposes a certification pathway that allows token issuers to seek a formal determination on whether their asset qualifies as a "Digital Commodity" under the CFTC or a "Restricted Digital Asset" under the SEC.

Investor Protection Measures

To protect everyday users, the bill mandates a tailored disclosure regime. This requires digital asset developers to provide accurate information regarding a project’s operation, ownership structure, and potential risks. By standardizing these disclosures, the act intends to prevent market manipulation and ensure that investors have the necessary tools to make informed decisions. It also introduces "Regulation Crypto," a new exemption from SEC registration that allows projects to raise capital while complying with right-sized regulatory obligations.

The Yield Controversy

The primary reason for the recent collapse in support for the Clarity Act involves a controversial provision regarding stablecoins. In late 2025 and early 2026, reports surfaced regarding a "hidden clause" that would effectively ban stablecoin issuers from passing interest or yields directly to holders. This provision was reportedly influenced by the traditional banking lobby, which fears a massive exodus of deposits from low-interest savings accounts into high-yield digital assets.

Currently, many traditional bank savings accounts offer minimal interest rates, often below 0.10%, while banks invest those deposits into U.S. Treasuries earning significantly higher yields. Stablecoins have the technological capacity to pass these Treasury yields directly to users. The banking sector, concerned about a potential $6.6 trillion deposit flight, pushed for the yield ban. This move led major industry players, including Coinbase CEO Brian Armstrong, to withdraw their support, labeling the provision a "kill switch" for innovation.

Market Impact Analysis

The uncertainty surrounding the Clarity Act has had a tangible impact on the digital asset markets. While the technology continues to evolve, the lack of a federal law keeps institutional investors cautious. For those looking to navigate these volatile markets, using established platforms remains a priority. For instance, traders interested in the primary market can monitor price movements through WEEX spot trading to execute strategies based on the latest legislative news.

The Global Competition

While the United States struggles to pass the Clarity Act, other regions are moving forward. Europe has already implemented the Markets in Crypto-Assets (MiCA) regulation, providing a clear roadmap for firms operating within the EU. Furthermore, some observers have noted the irony that while the U.S. considers banning stablecoin yields, other nations have begun integrating interest-bearing features into their central bank digital currencies (CBDCs). This disparity has led to fears that the U.S. may lose its status as a global financial hub if the Clarity Act remains in limbo.

Future Outlook 2026

The future of the Clarity Act depends on whether a compromise can be reached regarding the stablecoin yield provisions and the broader jurisdiction of the SEC. While the bill is not "dead" in a technical sense, it requires a significant shift in the Senate's political climate to move forward. Lawmakers are currently facing pressure from both the crypto industry, which demands clarity, and the banking sector, which demands protection for traditional deposit structures.

In the meantime, the industry continues to operate under the existing patchwork of state laws and federal guidance. Users often turn to platforms like WEEX to access a secure environment for managing their digital portfolios during this period of regulatory transition. Whether the Clarity Act passes later in 2026 or is replaced by a new legislative effort, the debate it has sparked will define American financial policy for the remainder of the decade.

Comparing Regulatory Frameworks

The following table summarizes the key differences between the proposed Clarity Act and the existing regulatory environment in the United States as of February 2026.

Feature	Current Environment (2026)	Proposed Clarity Act
Primary Regulator	Overlapping SEC/CFTC jurisdiction	Clear "Bright Line" division
Token Classification	Determined by court cases (Howey Test)	Formal certification pathway
Stablecoin Yields	Varies by platform/state law	Proposed ban on interest payments
Capital Raising	Strict SEC registration or private placement	New "Regulation Crypto" exemption
Consumer Disclosure	Non-standardized/Voluntary	Mandatory, tailored disclosure regime

Technical Challenges

Beyond the political hurdles, the Clarity Act faces technical challenges regarding the regulation of Decentralized Finance (DeFi). The bill attempts to protect software developers while promoting "responsible innovation," but defining who is responsible for a decentralized protocol remains a point of contention. Critics argue that the act’s requirements for trade monitoring and recordkeeping are difficult to apply to permissionless blockchains without compromising the core principles of decentralization.

As the 119th Congress continues its session, the industry remains watchful. The "Clarity" promised by the act's title remains elusive, and the $6.6 trillion question of bank deposit flight continues to loom over every legislative discussion. For now, the act remains a "Passed House" bill waiting for a Senate that is currently divided on the very future of American finance.