White House Declared March 1 Deadline: CLARITY Act Final Decision

CLARITY Act Final Decision Hinges on Stablecoin Yield Compromise

Washington has officially put a clock on stalled US crypto reform talks. The White House has set March 1 as the deadline to resolve disagreements holding up the CLARITY Act final decision, with negotiations now focused almost entirely on stablecoin yield rules.

Source: CryptosRus Official

Officials say recent meetings between banks, crypto firms, and regulators have been “productive,” but no final compromise has been reached. Without agreement, progress on the broader market structure bill remains frozen.

Stablecoin Yield Debate Still Blocking CLARITY Act Final Decision

At the center of the delay is whether stablecoin issuers or platforms should be allowed to offer yield or rewards on idle balances. Banks argue that allowing yields could pull deposits away from traditional accounts, increasing financial risk. Crypto firms counter that banning rewards would weaken innovation and push activity offshore.

Hopes Build on Third Meet-Up

The White House hosted its third closed-door meeting on February 20, 2026, led by White House officials, including representatives from Coinbase, Ripple, venture firm a16z, and major banking associations. Talks narrowed toward limiting passive yields, while potentially allowing rewards tied to active usage, such as transactions. 

Draft language discussed could involve oversight from the SEC, Treasury, and CFTC, with penalties reaching $500,000 per day for violations. Although no final deal has been made yet, progress is noted. 

This builds on the previous sessions, conducted for negotiations over the bills structure. The first meeting was a larger one including all major institutions from both sides but ended up in a tense unclear result, followed by a second meeting on Feb 10, which also failed to bring any unanimous decision. 

Importance of March 1 Deadline for Crypto Markets

A timely compromise could unlock the CLARITY Act final decision, clearing the way for clearer rules on digital commodities under CFTC oversight. Market sentiment has already turned optimistic, with Polymarket odds recently showing an 85% chance of passage by 2026.

Ripple executives, including CEO Brad Garlinghouse, many senators such as Bernie Moreno, have suggested the bill could pass as early as April if yield rules are finalized. Analysts estimate that even limited reward structures could unlock $10–20 billion in annual revenue for crypto platforms while preserving bank safeguards. 

If talks fail, uncertainty could continue to weigh on the $307 billion stablecoin market, adding volatility across digital assets.  

Path Seems Tough: Geopolitical Tension on Same Time

Tensions between the US and Iran have sharply been escalating. The US has moved its largest military force, including aircraft carriers, fighter jets, destroyers, and troops, to the Middle East since 2003. 

The American forces are ready for strikes on Iranian targets, but no final approval has come yet. Iran responded by warning the United Nations Security Council that any US attack would trigger retaliation against all US bases in the region, including Diego Garcia. 

In this tense era, if any war situation is being created the deadline could extend, where the community expects highly on CLARITY Act final decision now hinges on the next few days.