- The US Senate will hold closed-door talks later today on the closely watched Digital Asset Market Structure bill.
- Markets are following the developments ahead of the White House’s March 1 deadline on stablecoin yield negotiations.
Senate Democrats will convene today, February 26, at around 2:30 PM ET to discuss the Digital Asset Market structure bill, marking a key step in shaping the future of digital asset regulation in the US.
Today’s meeting comes as pressure intensifies for both parties (banks and crypto firms) ahead of the White House’s March 1 deadline to finalize debates on stablecoin yield frameworks, an aspect that has forced multiple delays to the Clarity Act due to political and regulatory disagreement.
Meanwhile, markets are closely watching for signals that will likely influence supervisory clarity, investor confidence, and, of course, short-term price movements.
Why Today’s Senate Meeting is Pivotal
First and foremost, Thursday’s debate follows the latest one where the White House sided against cryptocurrency companies, banning yield accrual on idle stablecoin balances. Commenting on the development, former Fox business reporter and Crypto America host Eleanor Terret said:
“Earning yield on idle balances, a key crypto industry goal, is effectively off the table. The debate has narrowed to whether firms can offer rewards linked to certain activities.”
Indeed, banks won as White House’s ruling removed the traditional savings-account-type model for stablecoin yields.
Now, the current draft emphasizes that holders can earn stablecoin rewards only by participating in specific activities, such as lending or structural fiscal use.
Further, the crypto market structure bill is set to clarify regulatory oversight by defining the roles of the Securities & Exchange Commission and the Commodity Futures Trading Commission.
Another primary source of uncertainty in crypto regulation in America has been the overlapping authority between the SEC and the CFTC, which experts say has led to heavy enforcement rather than clarity in rule-making.
Industry participants have repeatedly called for legislative clarity, arguing that ambiguity in this crucial matter will drive financial innovation offshore. Some believe such a move would immensely reduce market manipulation.
Today’s meeting is set to renew regulatory momentum in the US after months of delays and political deadlocks, with lawmakers seeking to balance market oversight, user protection, and the systemic risks associated with cryptocurrency offerings.
Officials have 4 days to resolve the stablecoin yield issue and clear the way for advancing the Clarity Act.
How the March 1 deadline came
The White House initiative targeted January 2026 to finalize debates on stablecoin yield models. Nevertheless, disagreements among banks and crypto industry stakeholders led to two pushbacks, one in mid-February and now on March 1.
Banks argued stablecoin yields will deteriorate the traditional banking system as they could divert trillions in deposits to the cryptocurrency sector. Who would use institutions that offer near-zero returns on deposits while stablecoin savings offer up to 4%?
On the other hand, industry leaders like Coinbase CEO believe banks are killing financial innovation. Brian Armstrong emphasized that stablecoins offer Americans an opportunity “to earn money on their money.”
Other sticking points included whether yield-generating stablecoins violate securities laws, how to manage reserves, and the desired disclosure standards.
Now, attention remains on March 1, as stablecoin adoption accelerates across real-world payments, crypto trading, and DeFi platforms.
With regulatory clarity as the primary obstacle for crypto innovation in the US and globally, today’s Senate discussion could shift sentiments well into March, making today a pivotal moment for digital asset investors and traders.
Treasury Secretary Scott Bessent stressed America should pass the crypto structure bill into law this year as “it is impossible to proceed without it.”
Source: https://zycrypto.com/senate-democrats-meet-on-crypto-market-structure-bill-as-march-1-deadline-nears/
