#BitcoinMarketAnalysis CLARITY Act (Digital Asset Market Clarity Act, H.R. 3633) has reached a fever pitch in February 2026. As of today, February 25, the industry is eyeing a critical March 1 deadline set by the White House to resolve the final hurdles in the Senate.

Here is a breakdown of why this legislation is being called a "watershed moment" for the U.S. crypto landscape.
🏛️ Legislative Status: The Final Sprint
The bill already passed the House in 2025 with strong bipartisan support. In the Senate, high-level negotiations are currently centered on the "Stablecoin Yield War"—a debate over whether stablecoin issuers can offer rewards and how that interacts with traditional banking.
Timeline: Industry leaders, including Ripple CEO Brad Garlinghouse and Coinbase's Brian Armstrong, have signaled a 90% confidence level that the bill could be signed into law by April 2026.
Key Players: The White House Crypto Policy Council is actively mediating between Wall Street banks and crypto firms to reach a compromise before the March 1 "red line."
🔍 Core Structural Changes
The CLARITY Act isn't just about "rules"; it’s about redrawing the jurisdictional map of the U.S. financial system:📈 Market & Liquidity Outlook
The "Clarity = Bullish" thesis is driven by the reduction of systemic risk.
Institutional On-Ramp: Major banks have historically stayed on the sidelines due to "regulation by enforcement." This bill provides the legal "green light" for pension funds and insurance giants to allocate to BTC and ETH.
The Yield Factor: If the bill allows stablecoin rewards, we could see a massive rotation of capital from traditional high-yield savings accounts into regulated on-chain stablecoins.
Volatility Warning: Expect "sell the news" price action around legislative milestones. While the long-term structure is bullish, short-term volatility often spikes during committee hearings or if the March 1 deadline is missed.
🎯 Strategic Takeaways for Traders
Watch the Inflows: Monitor BTC/ETH spot ETF flows; an uptick usually precedes legislative breakthroughs as institutions "front-run" the news.
Regulatory Alpha: Projects that have already leaned into compliance (like those with strong U.S. ties) are likely to outperform as "Regulatory Risk" premiums vanish.
Avoid the Hype: Don't trade every headline. Focus on the Senate Banking Committee sessions, as they hold the real power to move the needle this week.