Galaxy Research sounds alarm on Crypto Bill’s remaining challenges

A tentative agreement on stablecoin rewards has renewed hope for the CLARITY Act, a key piece of cryptocurrency legislation. 

The agreement, which resolves a major conflict between traditional banks and the digital asset industry, has provided a boost to the stalled legislation. However, experts are warning that the CLARITY Act still faces significant challenges and must overcome a series of unresolved issues before it can be passed.

In March 2026, key lawmakers, including Senators Thom Tillis (R-N.C.) and Angela Alsobrooks (D-Md.), reached a “tentative deal” with White House officials on the issue of stablecoin rewards. This agreement aims to address the concerns raised by traditional Wall Street institutions about stablecoin rewards offered by exchanges. These rewards, critics argue, could lead to a mass migration of deposits from traditional banks to crypto exchanges.

Senator Tillis and Alsobrooks’ deal was seen as a major step forward in the push to resolve the issue, as it has been one of the key stumbling blocks holding up the passage of the CLARITY Act since January. The White House, through crypto policy adviser Patrick Witt, praised the bipartisan efforts, calling the agreement a “major milestone” toward passing the legislation.

While the agreement on stablecoin rewards is a significant development, the CLARITY Act still faces other hurdles. Alex Thorn, head of research at Galaxy Digital, warned that while the stablecoin dispute is the current focus, it is not the only challenge. Thorn pointed out several other contentious topics that need to be resolved, including decentralized finance (DeFi) regulation, developer protections, and the powers of the Securities and Exchange Commission (SEC).

Thorn emphasized that the window for passing the CLARITY Act this year is closing rapidly. He stated that if the bill does not make it through the Senate Banking Committee by the end of April, the odds of it passing in 2026 would become extremely low. With limited time left for discussion, Thorn and other experts caution that the clock is ticking for the CLARITY Act to move forward.

The road ahead for the CLARITY Act

The CLARITY Act, which aims to establish comprehensive regulatory frameworks for cryptocurrency, is seen as crucial for the industry’s long-term growth. However, with the stablecoin rewards issue now addressed, lawmakers and the White House must turn their attention to the remaining obstacles that could prevent the bill from reaching the Senate floor. The legislation needs to pass the Senate by early May to have a realistic chance of becoming law in 2026.