CFTC chair signals CLARITY Act nearing passage

TLDR

CFTC Chair Michael Selig says he is optimistic the CLARITY Act could soon reach the president, signaling the main U.S. crypto bill is in late-stage negotiations.

1. Selig told Congress he expects Congress to soon send the CLARITY Act to the president, while other reports say only 23 policy issues remain but no vote is scheduled yet.
2. The bill would split crypto oversight between the CFTC and SEC, set national rules for stablecoins and DeFi, and lock in a compromise that bans passive stablecoin yield but allows activity-linked rewards.
3. The key variables now are Senate Bankings markup timing and election-year politics, so builders and investors should treat passage as plausible but not guaranteed in the near term.

Deep Dive

1. Late-Stage But Not Done

At a House Agriculture Committee hearing, CFTC Chair Michael Selig said he is optimistic that Congress will soon send this landmark legislation to the Presidents desk, signaling he thinks the CLARITY Act is close to enactment, according to a detailed hearing recap.

JPMorgan and other policy watchers report that negotiators have cut the list of disagreements from around twelve to two or three technical issues, mainly around DeFi oversight and token classification, suggesting most of the market-structure design is agreed.

However, the final bill text is not yet public and the Senate Banking Committee has not set a firm markup date, so there is still real timing risk despite Seligs upbeat tone.

2. What CLARITY Would Actually Do

The CLARITY Act would formally divide crypto oversight so that digital commodities (for example bitcoin and likely other non security tokens) go to the CFTC, and digital securities stay with the SEC, as described in a recent roundtable preview.

It also creates a federal framework for stablecoins, exchanges and DeFi platforms, replacing todays overlapping state and federal patchwork with clearer registration, custody and market integrity rules.

On the most contentious issue, stablecoin yield, the emerging compromise bans passive idle yield on balances but allows activity linked rewards tied to payments and platform use, aiming to reduce deposit flight from banks while preserving some crypto incentives.

Selig has been clear that more clarity will not mean leniency, warning that for fraud or manipulation we will find you and the full force of the law will come to bear, as summarized in the same hearing recap.

3. Timelines, Politics And What To Watch

Procedurally, the House already passed a version of CLARITY in 2025, and the Senate Agriculture Committee advanced its own version in early 2026; the crucial next step is Senate Bankings markup and a 60 vote Senate floor vote before reconciliation.

Senate schedules around other priorities mean the realistic window for committee action is the coming few weeks, with several analysts warning that slipping past midyear could push serious consideration into 2027 or beyond.

Prediction markets currently put passage odds in the mid double digits, and the White House plus major industry players are pushing hard, but the 2026 midterm election calendar could reorder priorities quickly if momentum stalls.

Conclusion

Seligs comments reinforce that Washington is closer than ever to a comprehensive U.S. crypto framework, with broad agreement on agency roles and stablecoin rules.

If CLARITY passes, it should reduce legal uncertainty and support institutional participation, but it will also formalize stricter oversight and compliance duties, so the net impact depends on how individual projects adapt to the coming rulebook.