Despite April appearing to be a lost cause for the crypto Clarity Act, lobbyists and a legislative aide suggest that a Senate committee hearing in May could keep the bill alive if it secures a final Senate vote by July. A U.S. Senate aide informed CoinDesk that potential delays, allowing Senator Thom Tillis more time to negotiate with banks on stablecoin yields, are still manageable. The earlier issues regarding decentralized finance (DeFi) protections seem resolved, leaving fewer hurdles for committee approval.
The challenge lies in navigating a packed legislative calendar: the Senate plans to leave Washington for about a dozen weeks before the November midterm elections, dealing with crucial matters like Homeland Security funding and nominations such as Kevin Warsh’s Federal Reserve appointment. If approved by the Senate Banking Committee, the bill must merge with the Agriculture Committee’s version, consuming time that current delays are eroding.
Further revisions are likely, particularly around an ethics clause limiting senior officials from profiting in crypto—a point of Democratic concern but not included in the banking panel’s draft. Passage could hinge on resolving market regulation commissioner appointments to secure enough Democratic support.
The House would need to approve a potentially revised version, but swift action is anticipated barring new disputes. President Trump’s signature is expected to be straightforward unless his insistence on voter ID legislation delays it.
If enacted, the Digital Asset Market Clarity Act would follow last year’s GENIUS Act as significant crypto legislation. However, unresolved stablecoin issues have stalled progress since January due to bank lobbyists’ concerns about yield programs threatening their business model.
While some lawmakers claim an agreement in principle on a compromise, Senator Tillis indicated April deadlines might shift to May. The White House supports limited rewards that do not resemble traditional bank interest, with Patrick Witt criticizing banks’ opposition as driven by greed or ignorance.
The current compromise allows yield payment exclusions for products resembling deposit insurance, but permits reward programs similar to credit card incentives. However, lawmakers are cautious about releasing text amid ongoing negotiations after industry reviews last month.
Cody Carbone of the Digital Chamber emphasizes urgency: “We’re too close to let this effort fail.” A markup hearing and bill text release are crucial next steps.
Crypto investment firm Galaxy estimates a 50-50 chance of Clarity Act passage by 2026, citing numerous unresolved issues under tight deadlines. Post-November elections offer a slim chance for revival during the “lame duck” session if negotiations falter.
While immediate action is critical for crypto lobbyists, the industry maintains long-term political strategies. Crypto PACs have invested heavily in cultivating bipartisan congressional allies, with Fairshake supporting both parties. As new Congress members join next year, there may be additional legislative priorities like tax reform and a federal bitcoin reserve if the Clarity Act becomes law.