The CLARITY Act 2026, which aims to provide regulatory certainty to the crypto industry in the United States, is at a critical juncture.
According to Alex Thorn, head of research at Galaxy Digital, if the legislation does not pass committee by the end of April, the chances of it passing this year are slim.
Time is running out, and every passing day reduces the likelihood of it being brought to the Senate floor in early May.
The main issue that is hindering the passage of the CLARITY Act is the debate over stablecoin rewards, which are feared to disrupt the traditional banking system.
However, Thorn warned that stablecoin rewards may not be the last hurdle, as other issues such as DeFi, developer protections, and regulatory enforcement powers also have the potential to be stumbling blocks.
US Senator Angela Alsobrooks stressed that both sides, the crypto and banking lobbies, need to be prepared to compromise, although all sides may come out slightly dissatisfied.
Senator Bernie Moreno had previously been optimistic that the legislation could pass Congress “hopefully before April,” but investment bank TD Cowen warned that approval could not happen until 2027, with full implementation in 2029 if the process is politically stymied.
President Donald Trump has also criticized banks for delaying the legislation, particularly over the stablecoin revenue payment dispute, and insisted that the US needs to resolve issues of crypto market structure urgently.
