Crypto Clarity Act Faces Tight Deadline in Senate

The US Senate's legislative calendar is running out of time, but a potential delay may not be fatal, according to aides and lobbyists. The crypto industry faces significant hurdles, including banking sector objections to stablecoin rewards. A Senate Banking Committee hearing is the next step, but the bill must be merged with a version passed by the Senate Agriculture Committee. Further revisions are expected, including an ethics piece and market regulation oversight. If passed, the bill would need House approval, which could be quick, and then President Trump's signature, expected to be the easiest step. The Digital Asset Market Clarity Act aims to become the second major crypto bill to become law, following the Guiding and Establishing National Innovation for US Stablecoins Act. However, unresolved stablecoin issues have delayed progress since the start of the year, with bank lobbyists expressing concerns about stablecoin rewards programs jeopardizing their business model. The debate has sparked interventions from the White House and tough rhetoric from crypto insiders, with some arguing that further lobbying by banks is motivated by greed or ignorance. A compromise has been proposed, banning yield on products that resemble insurance on deposits, while allowing rewards programs similar to credit-card incentives. However, the odds of the Clarity Act being signed into law in 2026 are roughly 50-50, according to a research note, due to the sheer number of unresolved questions that must be settled under time pressure.