Crypto Clarity Act Faces Uphill Battle in Senate Amid Tight Deadline

The Crypto Clarity Act, a crucial piece of legislation for the crypto industry, is struggling to gain traction in the US Senate due to ongoing debates over stablecoin yield. Despite initial hopes for an April progress, the bill is now likely to be delayed until May, according to lawmakers and lobbyists. The legislative calendar is running out of time, with the Senate set to recess in August and enter election mode until the November midterms. The bill needs to clear the Senate Banking Committee, which is currently stalled due to disagreements over stablecoin rewards programs. Bank lobbyists have expressed concerns that these programs could jeopardize the banking sector's business model. The White House has intervened, with a top crypto adviser stating that further lobbying by banks on this issue is motivated by greed or ignorance. A compromise has been proposed, which would ban payment of yield on products that resemble insurance on deposits but allow firms like Coinbase to structure rewards programs similar to credit-card incentives. However, the bill's chances of success are dwindling, with crypto investment firm Galaxy estimating the odds of it being signed into law in 2026 at around 50-50. The industry is playing the long game, with crypto PACs investing millions of dollars to build support in Congress. If the Clarity Act is not passed, it may reappear in the lame-duck session of Congress at the end of the year.