White House Sets March 1 Deadline to Advance CLARITY Act; Coinbase and Ripple Back Push
The Trump administration has set an informal March 1, 2026 deadline for Congress to resolve outstanding disputes on the Digital Asset Market Clarity Act (CLARITY Act), aiming for passage and a possible presidential signing in Spring 2026. The White House and Treasury Secretary Scott Bessent are urging lawmakers to create a single federal framework for digital assets to reduce regulatory uncertainty, stabilize markets and attract investment. Industry participants including Ripple and Coinbase have taken part in closed-door sessions with senior officials; Ripple CEO Brad Garlinghouse estimated about a 90% chance of passage by April. Key negotiations focus on market structure, agency authority and clear definitions distinguishing securities from commodities. If Congress meets the March 1 target, the bill could progress to a spring vote and eventual enactment, potentially replacing the current patchwork of agency interpretations with unified federal rules.
Bullish
A clear federal framework for digital assets typically reduces legal and regulatory uncertainty, which traders and institutions view positively. The CLARITY Act aims to define agency authority and distinguish securities from commodities — outcomes that would lower compliance risk for exchanges and token projects and could unlock institutional flows. Industry support from large firms like Coinbase and Ripple increases the bill’s credibility and the chance of pragmatic provisions. Short-term market reaction may be volatile around legislative milestones as traders price in passage risk; favorable language or progress (meeting the March 1 target) would likely prompt rallies in major tokens and exchange-listed products. Long-term, codified rules tend to increase market participation and liquidity, supporting higher valuations and reduced spreads. This mirrors past episodes where regulatory clarity (or the removal of uncertainty) — for example, clearer tax or custody guidance — led to renewed institutional engagement and price appreciation. However, outcomes depend on final bill text: overly restrictive provisions could be neutral or bearish for specific tokens deemed securities.