Key Points
- Senator Bill Hagerty anticipates the CLARITY Act will advance to the Senate Banking Committee during April
- The legislation aims to transfer primary crypto regulation from the SEC to the CFTC
- Disagreements over stablecoin yield provisions have caused delays, but recent discussions suggest a breakthrough
- Senate Banking Committee Chairman Tim Scott hasn’t announced a markup session date
- Polymarket traders estimate a 63% probability of Trump enacting the legislation in 2025
During remarks at the Digital Assets and Emerging Tech Policy Summit held at Vanderbilt University on Monday, Senator Bill Hagerty projected that the CLARITY Act would proceed through the Senate Banking Committee over the coming weeks, establishing an April timeframe for the landmark crypto regulation bill.
Hagerty expressed optimism that the legislation could successfully navigate the banking committee before April concludes, provided that lingering concerns are addressed satisfactorily.
The CLARITY Act secured House passage in July under its current title. Senate progress has been hindered by disputes surrounding stablecoin interest payments, ethical considerations, and resistance from certain cryptocurrency industry factions.
The proposed legislation would reallocate crypto market oversight responsibilities primarily from the Securities and Exchange Commission to the Commodity Futures Trading Commission. Given both regulatory bodies’ involvement, the bill requires endorsement from the Senate Agriculture Committee as well as the Senate Banking Committee.
The Agriculture Committee moved its iteration of the bill forward in January. The Banking Committee must still conduct a markup session before the legislation can advance to a full Senate floor vote.
Progress Emerges on Stablecoin Yield Standoff
The debate over stablecoin yield mechanisms has represented the most significant obstacle. Cryptocurrency firms, notably Coinbase, had raised objections to previous language that imposed sweeping restrictions on stablecoin reward programs.
Sources from both the crypto and banking sectors informed Crypto in America last week that representatives from both industries examined revised stablecoin yield provisions and express cautious optimism about reaching consensus. The specific wording of the updated language remains confidential.
Paul Grewal, Chief Legal Officer at Coinbase, expressed confidence that an agreement would materialize. He indicated to reporters last week that legislators were “close to a deal” on outstanding matters.
Committee Markup Timing Remains Uncertain
Senate Banking Committee Chairman Tim Scott hasn’t established a timeline for the markup session. The committee has also remained silent on whether it intends to publish a revised draft for public review.
Pro-cryptocurrency Senator Cynthia Lummis has suggested a markup could occur this month. However, pro-XRP attorney and Senate candidate John Deaton cautioned that delays extending into summer would likely redirect Congressional attention toward midterm election campaigns, potentially dooming the bill.
Cryptocurrency-focused political action committees are mobilizing for 2026 campaigns. Fairshake disclosed a $193 million fundraising total designated for the November midterm elections. The Fellowship PAC, which claims to have secured more than $100 million from crypto-supportive donors, announced Tether executive Jesse Spiro as its new chairman this week.
Polymarket trading currently indicates 63% probability of Trump signing the CLARITY Act into law during 2025, although those odds temporarily declined to 50% in recent trading.
The post CLARITY Act Faces Critical April Deadline as Senate Committee Prepares to Vote appeared first on Blockonomi.
Source: https://blockonomi.com/clarity-act-faces-critical-april-deadline-as-senate-committee-prepares-to-vote/
