In a concerted effort led by the Trump administration and supported by the crypto sector, agencies including the Treasury Department, the White House Council of Economic Advisers, the SEC, and the CFTC have launched a significant campaign aimed at urging the Senate to pass the Digital Asset Market Clarity Act. This initiative targets regulatory changes for the $2.4 trillion cryptocurrency market before the 2026 midterm elections.
The agencies coordinated their efforts this week through reports, op-eds, and proposed rules intended to undermine banking lobbyists’ resistance and prompt a long-overdue Senate Banking Committee markup. The executive branch’s message is clear: the regulatory framework is in place, economic risks are minimal, and time is of the essence.
In an April 8 post on X, Treasury Secretary Scott Bessent emphasized the need for the Senate to act swiftly: “Congress has spent almost five years trying to pass a framework to secure the future of finance. It’s time for the Senate Banking Committee to hold a markup and send the CLARITY Act to President Trump’s desk.” Ripple CEO Brad Garlinghouse expressed support, prioritizing progress over perfection.
The bill passed the House with a 294-134 bipartisan vote in July 2025 but has stalled in the Senate due to disputes between traditional financial institutions and the digital asset industry, particularly concerning yield-bearing stablecoins. Banks argue that interest payments on stablecoins could lead to a significant withdrawal of deposits from banks. However, the White House’s Council of Economic Advisers released a report countering this claim, estimating that banning yields would only marginally increase bank lending by $2.1 billion in the $12 trillion market, with community banks seeing a $500 million gain. Conversely, economists estimate an annual welfare loss of $800 million for American consumers if stablecoin yields are prohibited.
President Donald Trump has criticized traditional banks for using disagreements over stablecoin yields to block the CLARITY Act. James Thorne, chief marketing strategist at Wellington Altus, noted that resistance from established financial entities has delayed blockchain’s societal integration, with a coordinated effort needed between administration and Wall Street to overcome these delays.
Meanwhile, SEC Chair Paul Atkins and CFTC Chair Mike Selig announced readiness for the CLARITY Act’s jurisdictional changes. The legislation aims to shift digital assets from SEC regulation as securities to CFTC oversight once decentralized enough to be considered commodities. “Project Crypto” ensures that regulatory bodies are prepared post-enactment, according to Atkins.
Concurrently, Treasury has introduced stringent regulations for stablecoin businesses through the GENIUS Act, requiring them to adhere to anti-money laundering and compliance standards akin to financial institutions. This proposal aligns with national security interests while maintaining growth potential in the payment ecosystem.
As midterm elections loom, urgency mounts due to a limited legislative timeframe. The U.S. risks losing its competitive edge as digital asset development moves abroad to more regulatory-friendly countries like Abu Dhabi and Singapore. Jake Chervinsky of the Hyperliquid Policy Center highlights the CLARITY Act’s necessity, urging Congress to act promptly.
David Sacks, chair of the President’s Council of Advisors on Science and Technology, emphasizes the executive branch’s role in leading stablecoin policy through the GENIUS Act. He stresses that Senate approval is crucial for establishing comprehensive rules for digital assets.
The outcome hinges on whether the Senate Banking Committee responds to this coordinated pressure before election-year politics derail legislative efforts.