The Clarity Act failed to meet the March 1 deadline with progress stalled by a dispute over stablecoin returns.

The deadline imposed by the White House on banks and cryptocurrencies to resolve their standoff with stablecoins has passed.

With no deal in sight, trillions in institutional capital now hang in the balance.

Why is it important:

• Stablecoin legislation is widely seen as a gateway to widespread digital currency adoption in the United States.
• Without it, regulatory uncertainty persists, implementation risks increase, and innovation continues to migrate to friendlier jurisdictions in Europe and Asia.

the details:

• The March 1 deadline set by White House Cryptocurrency Council Executive Director Patrick Whit Dunne has been passed Add a compromise on stablecoin returns.
• Cryptocurrency companies are pushing for the legal right to offer regulated rewards on stablecoins like USDC.
• At the same time, the banks are afraid, for fear of Deposits flee if users chase 4-5% stablecoin returns Above savings rates that exceed 0.01%, push for strict limits or a complete ban.
• He said Bank source For the site of Crypto In America Although there is broad agreement that stablecoin balances should not earn direct interest, cryptocurrency companies are still trying to engineer a return through “membership programs, rewards and disincentives” – a solution that banks say is delaying business.
• The OCC may have strengthened the position of the banks, he noted in his latest release For the code GENIUS The act indicated that stablecoin awards could face tighter limits than the cryptocurrency industry expected.

The big picture:

• The Senate Banking Committee margin is now expected to be tabled in mid-late March, with exploratory negotiations set for April and a soft deadline in July before it begins. Paralysis of the election year .
• If a compromise cannot be reached, perhaps The Securities and Exchange Commission and the CEC may resort to executive action to fill the policy gap.
• Such a move could delay what JPMorgan expects will be a massive wave of institutional inflows in late 2026.