Senate talks stall CLARITY Act as Republicans, Democrats and industry clash over stablecoin yields and SEC’s role; delay coincides with ~$1B crypto outflows

first published 2026-02-16T13:08:15Z

The CLARITY Act — a US bill to create a comprehensive crypto regulatory framework that passed the House in July 2025 — is stalled in the Senate. Democrats oppose GOP language on tax treatment and a bespoke regulatory regime and have added ethics and bailout prohibitions. The crypto industry opposes bans on interest-bearing stablecoins and elevating the SEC as the primary regulator; US banks also oppose stablecoin yields. Markups were postponed and high-level negotiations have continued into Feb. 2026 as lawmakers, executives and bankers seek compromise ahead of the 2026 midterms. Delay has coincided with roughly $1 billion in crypto outflows.

AI Analysis

The bill’s Senate negotiations are delayed by partisan disputes and industry/banking objections to provisions (ban on interest-bearing stablecoins, SEC as primary regulator, tax treatment). Markup postponements and ongoing talks into Feb. 2026 create regulatory uncertainty; the summary notes roughly $1B in crypto outflows coinciding with delays, indicating concrete market movement.

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