Crypto Clarity Act Faces Tight Deadline in Senate

The crypto industry's hopes for the Clarity Act are still alive, but the legislative calendar is rapidly filling up, and a Senate aide warns that further delays could push the bill past the point of no return. The main obstacle is a dispute over stablecoin rewards, which has been ongoing since the start of the year, with bank lobbyists pushing for restrictions that could jeopardize the business model of banks. A potential compromise has been floated, which would ban yield payments on products that resemble insurance on deposits but allow firms like Coinbase to structure rewards programs similar to credit-card incentives. However, the compromise text has not been released, and lawmakers are hesitant to spark further negotiation drama. The odds of the Clarity Act being signed into law in 2026 are roughly 50-50, according to a research note from crypto investment firm Galaxy, due to the sheer number of unresolved questions that must be settled in sequence under severe time pressure. The bill's success depends on a markup hearing and the sharing of the long-awaited bill text, which has been delayed for three months. The crypto industry is playing the long game on the political front, with crypto PACs devoting millions of dollars to build relationships with members of Congress from both parties, in anticipation of future legislative battles.