
Senate Democrats revive stalled CLARITY Act talks, aiming to resolve SEC–CFTC oversight disputes as pressure mounts to regulate U.S. crypto markets.
White House urgency and looming elections push crypto legislation forward, but partisan divides and stablecoin rules continue to block consensus.
U.S. Senate Democrats are preparing to restart discussions on long-awaited legislation for regulating the crypto market, signaling a renewed effort to reduce uncertainty around digital assets. This closed-door meeting is the first formal Democratic engagement since the bill’s markup was delayed last month, raising hopes that progress may resume after weeks of delay.
According to journalist Eleanor Terrett, Democratic lawmakers will use the meeting to review unresolved issues that previously stalled the bill. Discussions are expected to focus on resolving internal disagreements before the legislation moves further through the Senate.
CLARITY Act Back in Focus
The main focus is the CLARITY Act, which seeks to create a clear framework for regulating digital assets in the U.S. A key part of the bill is defining the roles of the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), an issue that has long divided regulators, lawmakers, and industry participants.
While some parts of the bill have already passed through committees, disagreements over regulatory scope, enforcement authority, and compliance rules continue to slow progress. The renewed Democratic talks are seen as a necessary step to resolve these issues.
White House Push Speeds Up Talks — But Deadlock Remains
Momentum has increased following reported pressure from the White House, which has urged lawmakers and industry groups to settle disputes by the end of February. However, a high-level White House meeting held on February 3 with banks and crypto industry leaders failed to resolve the core disagreements, particularly over whether stablecoin issuers can offer interest or rewards.
Senate Committee Advances Bill, Partisan Divisions Persist
The Senate Agriculture Committee recently advanced a version of the crypto bill, giving it some legislative traction. However, the vote was along party lines, showing lack of bipartisan support, which remains a key obstacle to advancing it to the full Senate.
At the Ondo Finance Summit, Patrick Witt, Executive Director of the Crypto Council, said he believes President Trump is preparing to sign the CLARITY Act into law by April 3, 2026, if the bill clears Congress soon. This reflects strong optimism among industry leaders, even though the legislative path is not yet finalized.
Limited Time Before Elections
The political calendar adds urgency to the negotiations. As midterm elections approach, experts warn that the window for passing complex legislation will shrink. Lawmakers often slow down legislative work after midyear, making spring a critical period for progress.
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FAQs
The CLARITY Act aims to define clear rules for digital assets and clarify the roles of the SEC and CFTC.
Democrats are reviewing unresolved issues to reduce uncertainty and move the crypto bill forward after delays.
The White House is urging lawmakers and industry to resolve disputes quickly, speeding up progress on the bill.
If Congress approves the bill soon, it could be signed by April 3, 2026, according to industry projections.
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