Comprehensive U.S. crypto legislation is advancing in Congress, with the Clarity Act poised to unlock trillions in sidelined institutional capital as lawmakers confront stablecoin regulation, SEC oversight, and CFTC authority in a high-stakes policy battle.
Clear Regulatory Framework Could Release Trillions Into Crypto, Says White House Adviser
Federal lawmakers are continuing negotiations on comprehensive crypto legislation. Patrick Witt, Executive Director of the President’s Council of Advisors for Digital Assets, provided an update on the Clarity Act, detailing committee progress, bipartisan concerns, and efforts to resolve disputes surrounding stablecoin regulation and agency oversight.
Witt stated that regulatory certainty would unlock significant institutional participation in digital assets and strengthen U.S. market leadership. He shared on social media platform X on Feb. 13:
“There are trillions of dollars in institutional capital on the sidelines waiting to get into this space. Regulatory clarity is the unlock.”
In an interview on Yahoo Finance, he discussed efforts to pass the Digital Asset Market Clarity Act, stating: “There is so much goodness in this bill, no matter what your perspective is.” Witt outlined that the House approved its version of the Clarity Act last July, while the Senate crafted its own draft, advancing the Commodity Futures Trading Commission (CFTC) section through the Agriculture Committee and continuing discussions in the Banking Committee over the U.S. Securities and Exchange Commission (SEC) portion. A scheduled markup was postponed after senators from both parties raised concerns about potential deposit flight tied to stablecoin rewards.
Beyond the stablecoin yield debate, Witt highlighted additional sticking points involving token taxonomy, decentralized finance oversight, and ensuring the SEC does not absorb too much CFTC authority. He described the stablecoin rewards issue as a major obstacle, encouraging stakeholders to pursue a targeted solution that addresses concerns about so-called idle yield without disrupting broader business models.
Banking executives have warned that allowing yield-bearing stablecoins could pressure community bank deposits and lending, while digital asset advocates maintain that clear jurisdictional boundaries and defined compliance pathways would promote innovation, competition, and long-term stability in the crypto sector.
FAQ ⏰
- What is the Clarity Act in Congress?
It is comprehensive crypto legislation designed to define SEC and CFTC oversight and regulate stablecoins.
- Why are stablecoin rewards controversial?
Lawmakers worry yield-bearing stablecoins could trigger deposit flight from community banks.
- How could regulatory clarity impact institutional capital?
Patrick Witt said trillions in institutional capital are waiting for clear crypto regulations.
- What agencies are at the center of the crypto oversight debate?
The SEC and CFTC are negotiating jurisdictional boundaries under the Clarity Act.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
White House Says Trillions Await Bitcoin Market Rules
Patrick Witt emphasizes that regulatory clarity is essential to access trillions in institutional capital, highlighting ongoing Senate negotiations on the Clarity Act. He notes the government's efforts to centralize Bitcoin oversight and foster collaboration between banks and crypto firms to enhance innovation and participation in the digital finance sector.
CryptoFrontNews18h ago
The Central Bank of Russia plans to study tying the ruble to stablecoins, seeking new payment tools to circumvent sanctions
February 14 News, the Central Bank of Russia recently announced that it will conduct in-depth research on the feasibility of pegging stablecoins to the ruble and assess their risks and potential benefits. On February 12, Vladimir Chistyukhin, First Deputy Governor of the Central Bank of Russia, revealed at the Alpha Dialogue Conference in Moscow that the research plan aims to explore how stablecoins can better integrate into Russia's financial system. This move comes at a critical moment when Russia, facing Western sanctions and global banking access restrictions, is seeking new payment tools.
For years, the Central Bank of Russia has opposed stablecoins, especially those pegged to fiat currencies, believing they could pose financial stability and regulatory risks. However, as cryptocurrencies gradually enter the international settlement space and the digital ruble project is launched, the stance of the Central Bank of Russia has changed. Previously, Russia allowed cryptocurrencies for some international settlements, and the digital ruble has entered the pilot phase. It is expected that stablecoins will be fully launched by the end of 2026.
GateNewsBot23h ago
Pompliano reminds investors: Bitcoin's value test is approaching. Can cooling inflation support holding positions?
February 14 News, Bitcoin entrepreneur Anthony Pompliano recently stated that as inflation data recedes, Bitcoin investors face the challenge of reassessing their reasons for holding. Pompliano pointed out on Fox Business that the value of Bitcoin lies in its limited supply, and when governments increase money issuance, Bitcoin prices tend to rise. He believes that, like gold, Bitcoin is a preferred long-term investment asset, but during periods of weakening inflation, investors may need to consider their holdings more cautiously.
According to data from the U.S. Bureau of Labor Statistics, the Consumer Price Index (CPI) in January decreased from 2.7% in December to 2.4%. Moody’s Chief Economist Mark Zandi warned that headline inflation data might be lower than actual experience, implying that market demand for inflation-hedging assets like Bitcoin could be affected in the short term. Pompliano stated that the macroeconomic environment will continue to influence Bitcoin price fluctuations, which he calls the “currency slingshot effect”—the short-term deflation masking the dollar’s devaluation trend, leading investors to pay more attention to Bitcoin’s value preservation function in the future.
GateNewsBot02-14 03:40
Bottoming out and aiming for a rebound by the end of the year! Standard Chartered predicts: Bitcoin may drop to $50,000, and Ethereum could fall to $1,400
Standard Chartered Bank has revised down its short-term outlook for the cryptocurrency market, predicting a potential wave of sell-offs in the coming months but remaining optimistic about a rebound by the end of the year. The Bitcoin target price has been lowered to $100,000, and Ethereum to $4,000, citing low confidence among ETF investors and economic uncertainties affecting market sentiment. Although the short-term outlook is bearish, the long-term market resilience remains positive.
区块客02-14 03:05
White House Advisor: Stablecoin yields will not pose a threat to banks
White House crypto policy advisor Patrick Witt stated that stablecoin yields from crypto platforms do not pose a threat to the U.S. banking industry, and banks and crypto companies can coexist and benefit mutually, with banks capable of launching similar products. At the same time, he remains optimistic about the potential of stablecoins, believing they can drive innovation and development in banking. U.S. Treasury Secretary warned that crypto legislation could be delayed due to political changes.
GateNewsBot02-14 01:52
ETH 15-minute increase of 1.49%: ETF capital inflows and stablecoin supply expansion drive short-term rally
From 2026-02-13 15:00 to 2026-02-13 15:15 (UTC), ETH recorded a +1.49% gain within just 15 minutes, with the price rising from approximately $2,017.15 to $2,047.23. Market volatility was evident, with trading activity and attention increasing in tandem, reflecting the rapid impact of structural capital flows on short-term market movements.
The main driver of this anomaly is the continuous inflow of ETF funds, resonating with the synchronized expansion of on-chain stablecoin supply. Data shows that ETH ETF holdings have reached 5.44% of circulating supply,
GateNewsBot02-13 15:16
