#TrumpAnnouncesNewTariffs Digital Asset Market CLARITY Act (H.R. 3633) is a defining story for crypto in 2026. After passing the House last year with a strong bipartisan vote (294-134), the bill is currently the subject of intense negotiations in the Senate as of February 2026.

Here is a breakdown of what’s happening right now and why the "smart money" is paying attention:
🏛️ Current Legislative Status (February 2026)
While the bill has strong momentum, it has hit a temporary "tug-of-war" phase in the Senate:
The Deadlock: Negotiations have recently slowed due to a heated dispute over stablecoin yields. Traditional banks are lobbying against allowing stablecoin issuers to offer interest-like rewards, fearing direct competition with savings accounts.
White House Pressure: The administration has set a March 1 deadline for negotiators to resolve these disputes.
The Outlook: Despite the friction, industry leaders like Ripple's CEO have noted a high probability (around 90%) of the act passing by April 2026, as both parties want a "win" before the midterm election cycle fully kicks in.
🔍 Key Pillars of the CLARITY Act
The bill aims to replace "regulation by enforcement" with a set statutory rulebook:📈 Market Implications
Regulatory certainty is often more important than the regulations themselves. If signed:
Institutional Floodgates: Large asset managers who have stayed on the sidelines due to "compliance risk" will have a clear legal path to participate.
Infrastructure Growth: U.S.-based builders can develop DeFi and payment protocols without the constant threat of retroactive lawsuits.
Volatility Dampening: While crypto will always be volatile, "enforcement-driven" price crashes (triggered by sudden SEC notices) would likely decrease.
Note: Watch for the March 1 deadline. If a compromise on stablecoin yields is reached by then, we could see a rapid move toward a final Senate vote.