Washington is closing in on the March 1 target tied to the CLARITY Act, an informal deadline set by the Trump administration for Senate leaders to narrow a long-running dispute over US crypto legislation. The negotiations are still centered on two unresolved issues: how stablecoin rewards should be handled, and which federal agencies should control different parts of the digital asset market.
Large holders are already repositioning. Santiment data cited in the source shows a sharp jump in transactions above $100,000 on both Bitcoin and Ethereum. In one 12-hour window, Bitcoin recorded 14,686 whale transactions, the highest level since early 2021. Tether (USDT) also saw elevated activity, with 9,316 whale transactions reported recently. The article notes that similar spikes in the past often came before major price swings or reversals.
Stablecoin rewards remain the hardest issue
The biggest obstacle for the Digital Asset Market Clarity Act is still the fight over stablecoin yield. The House passed the bill in 2025, but the Senate has not moved it forward. Banks are concerned that if stablecoins can offer attractive returns, depositors may shift funds out of traditional accounts, putting pressure on banking system liquidity.
Coinbase and Ripple have met with White House officials in search of a compromise. One proposal mentioned in the source would ban yield on “idle” balances while allowing “rewards” for active users. That distinction matters because the existing GENIUS Act already bars interest on payment stablecoins at the issuer level. The current dispute is whether exchanges and wallet providers should be allowed to offer similar incentives to users through other structures.
CFTC and SEC authority is also being defined
The CLARITY Act is also designed to set a federal framework for the broader digital asset market. Under the approach described in the source, the CFTC would gain greater authority over “digital commodities” such as Bitcoin, while the SEC would keep jurisdiction over assets that resemble traditional securities. The goal is a single regulatory structure that gives the US a clearer base for crypto development.
SEC Chair Paul Atkins has backed the bill and described it as a long-overdue update to the rulebook. Treasury Secretary Scott Bessent is also pushing for a fast resolution, arguing that clear federal rules are what the market needs to remain stable and reassure investors.
March 1 could shape the rest of 2026
According to the source material, the outcome of the March 1 talks may set the tone for the rest of 2026. If negotiators reach an agreement, Ripple CEO Brad Garlinghouse believes there is a 90% chance the bill passes by April. A clear legal structure could then open the door for more institutional capital.
If no deal is reached by March 1, the bill could face another delay. That, in turn, may cool the whale activity now building across major networks. For now, the scale of large transfers suggests the market is treating regulatory clarity as the next major catalyst.