Bitcoin holds as CLARITY Act, SEC-CFTC split shape oversight

US crypto market structure legislation: What the White House push means

According to Patrick Witt, executive director of the President’s Council of Advisors for Digital Assets at the White House, officials are working hard to pass a Bitcoin  BTC +0.00% and broader crypto market structure bill. The initiative, framed around the CLARITY Act, seeks to codify token classification, venue obligations, and payments guardrails while aligning federal oversight.

The push meets entrenched debates over who regulates what and how. The core pressure points include SEC versus CFTC jurisdiction, how to define and supervise stablecoin yield, and whether DeFi and tokenized instruments fall under existing securities rules.

SEC vs CFTC oversight, stablecoin yield: why it matters

Oversight determines which disclosure regimes, custody standards, and market-surveillance tools apply. According to AI-CIO, a joint SEC–CFTC effort called Project Crypto is being pitched as a regulatory bridge, with a token taxonomy, while final legislation is negotiated.

Stablecoin yield is pivotal because rewards can resemble bank-like interest or activity-based incentives. As reported by Decrypt, market participants warn that blurred definitions could unsettle compliant reward models and on-chain liquidity used by institutions.

Industry views remain split on the current CLARITY Act draft. Coinbase has criticized provisions on stablecoin yield, oversight allocation, and DeFi treatment; according to CryptoNews, “in its current form, the bill would be materially worse than the status quo,” said Brian Armstrong, CEO of Coinbase.

Prospects depend on bipartisan math and amendments. As reported by CoinDesk, clearing a 60-vote Senate threshold will likely hinge on compromises across stablecoin yield, tokenized securities, DeFi’s status as an intermediary, and the SEC–CFTC split.

What changes under the CLARITY Act for key market actors

Immediate impacts for exchanges, DeFi, stablecoin issuers, institutions

For centralized exchanges, a commodities-forward approach could steer registration and surveillance toward CFTC-style market rules while preserving anti-fraud authority. A clear token taxonomy would reduce listing uncertainty and enforcement risk.

For DeFi, outcomes turn on whether protocol operators are treated as regulated intermediaries. If they are, obligations could include disclosures, controls over front-ends, and limits on incentive programs until safe-harbor criteria are met.

For stablecoin issuers, explicitly defining permissible yield would frame rewards, liquidity incentives, and distribution partnerships. Clarity could also influence banking relationships and how reserve assets and program disclosures are presented.

For institutions, consistent definitions and a bridge regime could ease compliance for custody, reporting, and liquidity provisioning. That, in turn, would help risk committees align crypto programs with existing control frameworks.

Legislative pathway, Project Crypto bridge, and likely compromises

Passage likely requires a sequenced approach: interim coordination via the SEC–CFTC bridge initiative, paired with targeted amendments to CLARITY addressing definitions and supervisory lines. According to MSN, Coinbase leadership has signaled confidence that an agreement is ultimately reachable.

Given the sticking points, workable compromises could include tighter definitions for yield, phased oversight for tokenized instruments, and clarifications on non-custodial DeFi. Each area remains under negotiation and could shift as text is refined.

At the time of this writing, Bitcoin traded near $68,924, while Coinbase stock was around $166.17 intraday, up about 17.78%, based on data from Yahoo Finance. These figures offer context for policy-sensitive sentiment rather than any prediction.