US lawmakers are preparing for another high-stakes debate over the future of digital asset regulation.
Key Takeaways
- Congress meets February 20 to debate stablecoin yield rules under the CLARITY Act.
- Banks warn of deposit outflows; crypto firms defend rewards as essential.
- The bill splits oversight between the U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission.
On February 20, 2026, Congress will convene its third session on the CLARITY Act (H.R. 3633), a bill designed to define how cryptocurrencies and stablecoins should operate under U.S. law. The meeting, scheduled for 2:00 p.m. UTC, is widely seen as a decisive moment in the ongoing standoff between banks and crypto firms.
At the center of the dispute is a controversial question – should crypto exchanges be allowed to offer interest or rewards on stablecoins? Traditional lenders warn that such incentives could drain deposits from banks, while digital asset companies argue that yield offerings are essential to staying competitive in modern financial markets.
🚨NEW: A third stablecoin yield meeting is set to take place at the White House tomorrow at 9:00 A.M. ET. A small group representing crypto and banks is expected to attend. More in the A.M. https://t.co/XIYW25VDSA
— Eleanor Terrett (@EleanorTerrett) February 19, 2026
What Lawmakers Will Debate
The February 20 session will focus heavily on stablecoin revenue models and whether exchanges should be restricted from sharing yield with users. Representatives from major crypto firms, including Coinbase, are expected to participate alongside traditional banking stakeholders. The White House is also involved, with digital asset policy lead David Sacks acting as a mediator in discussions.
Banks have repeatedly warned that if exchanges are permitted to distribute interest on stablecoins, consumers may shift funds away from savings accounts, potentially destabilizing deposit bases. Crypto platforms, however, view yield mechanisms as a core feature of blockchain-based finance and argue that banning them would weaken innovation in the U.S.
Inside the CLARITY Act
The CLARITY Act seeks to create a comprehensive federal framework for digital assets. One of its primary goals is to clarify which regulator oversees which part of the market. Under the bill, the U.S. Securities and Exchange Commission would retain authority over digital assets classified as securities, while the Commodity Futures Trading Commission would gain primary oversight over digital commodities such as Bitcoin.
The legislation also introduces formal legal definitions separating digital commodities from securities. Stablecoins would be carved out and regulated under a distinct structure, rather than being treated as commodities. In addition, crypto exchanges and brokerages would be required to register and meet compliance standards in order to legally operate within the United States.
Senate Gridlock Threatens Timeline
The House of Representatives approved the CLARITY Act with bipartisan backing in July 2025, passing it by a wide margin. However, progress in the Senate has stalled. While the Senate Agriculture Committee advanced its own version earlier this year, the Senate Banking Committee postponed further action amid disagreements over the stablecoin provisions.
Lawmakers are under pressure to finalize the framework before April 2026, as the approaching midterm election cycle could delay legislative momentum. If consensus is not reached soon, the U.S. risks prolonging regulatory uncertainty at a time when global competitors are rapidly advancing their own digital asset frameworks.
The information provided in this article is for educational purposes only and does not constitute financial, investment, or trading advice. Coindoo.com does not endorse or recommend any specific investment strategy or cryptocurrency. Always conduct your own research and consult with a licensed financial advisor before making any investment decisions.
Source: https://coindoo.com/congress-reopens-stablecoin-debate-as-clarity-act-faces-crucial-vote/