Senate's Crypto Clarity Act Faces Tight Deadline, But Still Has a Chance to Pass

The US Senate's Crypto Clarity Act, a crucial piece of legislation for the crypto industry, is facing a tight deadline to pass, but it still has a path to survival. A committee hearing in May could keep the bill alive, as long as it can reach a final vote by July. The legislative calendar is running out of room, but a potential delay of a couple of weeks to allow Senator Thom Tillis to finish discussions with bankers over stablecoin-yield concerns may not be fatal. The bill has been delayed due to a debate over stablecoin rewards, which has been raging since the start of the year. Bank lobbyists have expressed concerns that stablecoin rewards programs could jeopardize the banks' business model, but the White House has leaned into the crypto position on allowing some rewards. The current version of the compromise would ban payment of yield on any product that looks or acts like insurance on a deposit, but would still let firms structure rewards programs akin to credit-card incentives. The odds of the Clarity Act being signed into law in 2026 are roughly 50-50, and possibly lower, due to the sheer number of unresolved questions that must be settled in sequence under severe time pressure.