How The CLARITY Act Could Boost Stablecoin Adoption In 2026

White House Crypto Czar David Sacks has confirmed the Senate will mark up the CLARITY Act in January 2026 as stablecoins look to emerge as a significant new buyer for U.S. debt in 2026.

January Markup Confirmed After 43-Day Shutdown Delay

Sacks announced December 18 that Senate leaders “confirmed that a markup for Clarity is coming in January.” 

The CLARITY Act, which passed the House 294-134 in July, finally moved to Senate committee review after a 43-day government shutdown delayed progress through fall.

Senate Banking Chair Tim Scott (R-SC) and Agriculture Chair John Boozman locked in dates for the markup. 

The urgency around crypto legislation ties directly to US debt dynamics. 

The GENIUS Act signed by Trump in July 2025 requires 1:1 backing with US Treasuries or cash, creating structural demand for short-term government debt. 

Treasury Secretary Scott Bessent says this will “expand dollar access for billions across the globe.”

The numbers are massive. The stablecoin market cap sits at $234 billion today. 

Standard Chartered forecasts $2 trillion by 2028. Bernstein projects $4 trillion by 2035. Coinbase Global Inc. (NASDAQ:COIN) estimates $1.2 trillion by the end of 2028 in a conservative scenario.

Circle (NASDAQ:CRCL) holds $20 billion in Treasury bills—43% of its reserves while Tether holds $125 billion in US Treasuries. 

If the industry hits $2 trillion, stablecoin issuers could become the fifth-largest holder of U.S. debt, potentially surpassing China and Japan who’ve cut Treasury positions from 34% to 23% of total holdings over the past decade.

The Debt Crisis Makes Stablecoins Essential

As of December 3, 2025, total gross national debt hit $38.40 trillion—up $2.23 trillion year-over-year. 

The US will hit $39 trillion by approximately March 6, 2026 if current trends continue.

Interest costs are projected to hit $14 trillion over the next decade versus $4 trillion over the past decade.

Banks aren’t waiting for final passage to move. 

The OCC issued Interpretative Letter 1188 in December, blessing banks to execute riskless principal crypto transactions. 

JPMorgan Chase & Co, Visa Inc, Mastercard Inc, and PayPal Holdings Inc. are already building stablecoin infrastructure.

Additionally, JPMorgan plans to accept Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH) as collateral, initially through ETF-based exposures. 

The FDIC proposed application processes for GENIUS Act-compliant stablecoin issuers in December 2025, streamlining entry for banks and fintechs.

The Political Timeline

Despite the January markup confirmation, significant obstacles remain. 

2026 midterm elections loom large. All 435 House seats and 33 Senate seats are up for election. 

Bipartisan legislation traditionally stalls in election years as lawmakers focus on their races.

Three sticking points remain unresolved:

• Yield-bearing stablecoins: Banking groups argue loopholes let stablecoins compete unfairly with traditional savings products.
• DeFi regulation: Dispute over whether strict rules criminalize code development or lax rules create AML loopholes.
• Custody standards: Trump family involvement in World Liberty Financial (CRYPTO: WLFI) and the TRUMP (CRYPTO: TRUMP) meme coin creates conflict concerns.