US crypto rules take shape after 10 days of agency and senate action
In the first week of April 2026, US digital asset regulation advanced on two major fronts, with Senate negotiators circulating a new compromise on stablecoin yields for the CLARITY Act and the SEC advancing its own "Reg Crypto" framework for White House review.
"We'll have reg crypto that we'll be proposing here shortly," SEC Chair Paul Atkins said Monday at a digital assets summit hosted by Vanderbilt University, confirming the proposal is now with the White House's Office of Information and Regulatory Affairs for review before publication.
The SEC's proposal includes a "startup exemption" to allow crypto projects to raise capital under specific disclosures over a four-year period, according to a March speech by Atkins. Separately, Senate Banking Committee staffers are briefing crypto and banking industry groups on revised language for the CLARITY Act, aiming to resolve a months-long impasse over whether stablecoin issuers can offer yield, as reported by CoinDesk and Politico.
These parallel developments, along with a planned April 7 Federal Deposit Insurance Corporation (FDIC) meeting on the bank-focused GENIUS Act, could break the legislative logjam that has left the nearly $2 trillion crypto industry in legal limbo. A potential Senate Banking Committee markup for the CLARITY Act is now seen as possible by the end of April, according to statements from Senator Cynthia Lummis.
Senate Nears Deal on Stablecoin Yield
The primary obstacle to the CLARITY Act, a comprehensive market structure bill passed by the House in July 2025, has been the dispute over stablecoin rewards. US banks have argued that yield-bearing stablecoins could draw significant deposits away from traditional institutions, while crypto firms like Coinbase maintain such products are vital for competition.
Revised compromise language, spearheaded by Senators Angela Alsobrooks and Thom Tillis, is now being reviewed by industry stakeholders. While details remain private, crypto and banking leaders told reporters last week they were hopeful a workable solution had been reached. Coinbase Chief Legal Officer Paul Grewal said on Fox Business he was confident a deal was near. The optimism is reflected on prediction market Polymarket, where traders give the CLARITY Act a 63 percent chance of being signed into law in 2026.
SEC's 'Reg Crypto' Moves to White House Review
While Congress negotiates, the SEC under Chairman Paul Atkins is moving ahead with its own rules. The "Reg Crypto" proposal sent for White House review aims to create a "comprehensive regulatory framework for crypto asset-related securities," according to the agency's fiscal year 2027 budget request. The plan includes the startup exemption and a broader "innovation exemption," which would function as a regulatory sandbox for onchain assets.
The move comes as the agency braces for an 11 percent reduction in its annual funding to $1.908 billion for FY27, a cut the White House framed as part of a broader effort to reduce spending. The SEC's budget justification states it can deliver on its mission by emphasizing "efficiency, innovation, and collaboration."
A Two-Track System Emerges
The regulatory landscape is shaping into a two-track system: one for crypto-native firms under the proposed CLARITY Act, and another for federally regulated banks under the GENIUS Act. The FDIC's April 7 meeting will discuss rules for how banks can issue stablecoins, manage reserves, and structure their operations, a key step in implementing the stablecoin bill.
In contrast to the SEC's budget constraints, the Commodity Futures Trading Commission (CFTC) is requesting a 12.3 percent budget increase to $410 million. CFTC Chairman Michael S. Selig cited the agency's growing oversight of crypto markets, particularly in derivatives and prediction markets, as justification for the requested funds. This divergence highlights the ongoing debate in Washington over which agency will be the primary regulator for the digital asset space.
This article is for informational purposes only and does not constitute investment advice.
Edgen Crypto·Apr 02 2026, 21:19
