The administration had urged both the crypto industry and the banking sector to reach common ground to move the legislation forward. That agreement has yet to materialize.
Crypto Bill Hits ‘Yield Wall’While the Senate Agriculture Committee has approved its portion of the bill, progress in the Senate Banking Committee has slowed considerably.
The sticking point centers on whether stablecoin issuers should be allowed to offer yield or rewards to holders — an issue that has delayed any markup date for the Banking Committee’s section of the legislation.
The disagreement has fueled speculation that if lawmakers fail to strike a deal, federal regulators could revert to a tougher stance toward crypto firms.
If no compromise is reached, Barron suggested that the likely outcome would be continued “regulation by enforcement” from agencies such as the Securities and Exchange Commission (SEC) and the Office of the Comptroller of the Currency (OCC).
That possibility aligns with projections from JPMorgan, which has forecast meaningful institutional inflows into digital assets in the latter half of 2026 if regulatory clarity improves.
Institutional Surge Under CLARITY ActJPMorgan analysts, led by Nikolaos Panigirtzoglou, have described the potential passage of the CLARITY Act as a decisive turning point for the crypto market.
In a recent research note, JPMorgan outlined three interconnected effects that could follow the bill’s approval. First, it would end the current reliance on enforcement actions as the primary method of oversight, replacing uncertainty with defined rules.
New negotiations in the Senate are expected to resume in April 2026, with July 2026 seen as an informal deadline before the election cycle begins to dominate the legislative agenda and reduce the likelihood of major policy breakthroughs.
Featured image from OpenArt, chart from TradingView.com
