Stablecoin regulation in the United States is entering a transformative phase as of February 2026. The most newsworthy development today centers on the evolving regulatory landscape—particularly the pending CLARITY Act, implementing measures under the GENIUS Act, and evolving SEC guidance on the treatment of stablecoins by broker-dealers. Together, these developments are poised to redefine how stablecoins function within the broader financial system.
Why Regulation Matters Now
Regulatory clarity is critical because stablecoins underpin vast segments of digital asset markets and increasingly intersect with traditional banking and payments. The GENIUS Act, signed into law in mid‑2025, established foundational rules—but its implementation is only now gathering momentum. Meanwhile, regulators and legislators are pushing to finalize complementary frameworks, including jurisdictional boundaries under the CLARITY Act and operational expectations via SEC guidance. These regulatory moves will dictate who can issue stablecoins, under what conditions, and how they interact with existing financial infrastructure.
GENIUS Act Implementation Shifts the Playing Field
Signed by the president in July 2025, the GENIUS Act mandates that U.S. stablecoin issuers maintain one-to-one backing with high-quality liquid assets like U.S. Treasuries, submit to audits, and obtain approval to issue. It also establishes a phased timeline for compliance and formal licensing to resume issuing stablecoins over the next few years.
Paxos, a regulated tokenization platform, recently highlighted how these rules are disrupting long-held assumptions in the banking sector. The company emphasized that regulated stablecoins now fall firmly within the regulatory perimeter—and banks that adapt early could gain a competitive edge.
CLARITY Act Remains in Stalemate
On February 10, the White House convened a high‑level meeting with federal agencies, banks, and crypto industry firms to resolve disputes around stablecoin yields—an unresolved issue that has stalled progress on the CLARITY Act. The legislation, which defines regulatory jurisdiction between the SEC and CFTC, passed the House but remains stalled in the Senate.
This stalemate matters because without clarity, issuers and market participants remain uncertain about whether stablecoins qualify as commodities, securities, or a separate category altogether.
SEC Offers Practical Guidance to Market Participants
On February 19, SEC Commissioner Hester Peirce welcomed divisions’ issuance of an FAQ allowing broker-dealers to apply a 2% haircut on proprietary positions in payment stablecoins when calculating net capital. This pragmatic guidance indicates an evolving willingness from regulators to integrate stablecoins into existing frameworks, albeit with caution.
Peirce described the FAQ as shedding light on the commission’s thinking and expressed openness to stakeholder feedback on more substantial regulatory adjustments.
Broader Regulatory Landscape and Global Context
Globally, the push for stablecoin regulation is widespread. TRM Labs reports that over 70% of jurisdictions progressed stablecoin regulatory frameworks in 2025, boosting institutional digital asset adoption.
Domestically, the GENIUS Act’s impact is already visible. A Federal Reserve official noted that stablecoins are increasing demand for U.S. Treasuries—contributing to dollar dominance and slightly depressing short-term yields.
What’s Next: Watch for Timelines and Battlefield Legislation
In the weeks and months ahead, the crypto market will closely follow:
- The White House’s mediation outcomes, especially whether the CLARITY Act advances out of the Senate.
- Official implementing guidance and licensing details required by the GENIUS Act, including timeline clarity and application processes.
- SEC rulemaking on broker-dealer treatment of stablecoins and potential expansion of capital rule exceptions.
- Legislative momentum or pushback—particularly from banking lobbyists, tech stakeholders, and crypto advocates—over yield-bearing and algorithmic stablecoins.
Even with regulatory progress, debates over yield-bearing models and algorithmic stablecoins remain unresolved and politically charged.
What the Market Is Watching
- Will banks gain market share by integrating regulated stablecoins ahead of non‑bank competitors?
- Can Congress break the yield-ceiling impasse and move CLARITY forward?
- How will the Fed’s evolving policies impact stablecoin access to payment systems?
- Will implementation timelines and licensing rules under GENIUS drive consolidation or innovation among stablecoin issuers?
This regulatory phase isn’t just bureaucratic—it’s foundational. The decisions made today will define stablecoins’ legal identity, systemic role, and place in mainstream finance.
In short, stablecoin regulation is undergoing a critical transformation. The GENIUS Act implementation, SEC’s pragmatic guidance, and stalled—but closely watched—CLARITY negotiations are setting the terms for how stablecoins will operate. The market is watching regulatory signals—and sooner than later, those signals will reshape the ecosystem for years to come.