The CLARITY Act, aimed at providing regulatory clarity for the US crypto industry, faces a narrow legislative timeline. Analysts say the bill must advance soon. If it fails to move forward within weeks, its chances of passing this year could drop sharply.
Alex Thorn, head of firmwide research at Galaxy Digital, issued the warning over the weekend. He stated that the legislation has to pass the committee before the end of April. If it does not, the chances of approval in 2026 may become extremely low.
Thorn shared his views in a post on X. He stated that the bill has to make it to the Senate floor by early May. He added that the floor time available is reducing as other priorities move ahead.
Senate Majority Leader John Thune recently signaled a delay. According to him, the US Senate will not consider the market structure of digital assets legislation before April. The lawmakers will concentrate more on the SAVE America Act.
CLARITY Act Debate Expands Beyond Stablecoin Rewards
The SAVE America Act will require citizens to provide a personal verification of US citizenship when registering to vote. This has moved the consideration of the crypto legislation further down the agenda for the US Senate. This has narrowed the time frame for the consideration of the CLARITY Act.
The rewards offered by stablecoins have been a major area of contention. There are concerns that the rewards could threaten traditional financial institutions, at least according to certain banking groups.
Thorn stated that the problem with stablecoins may not be the only one. Even if lawmakers manage to agree on the rewards problem, new arguments may arise. Thorn mentioned the problem of decentralized finance.
The question of which organizations will regulate digital assets is still under consideration. All of the above may affect the development of the market structure bill.
US Senator Angela Alsobrooks recently commented on the negotiations. The Maryland Democrat serves on the Senate Banking Committee. She said that both the cryptocurrency and banking industries “may have to make some compromises.”
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Senator Alsobrooks said that neither side is likely to get everything it wants. She said that “we’re probably going to go in there, and we’re probably going to come out a little bit unhappy.”
Source: American Bankers Association
Crypto Market Bill Faces Long Timeline
Senator Bernie Moreno, a Republican from Ohio, said that the process might speed along quickly. In February, he said that the legislation could pass Congress by April, according to CNBC.
Nevertheless, a more cautious outlook is provided by analysts at investment bank TD Cowen. Their January report proposed that market structure legislation might experience long delays. The report claimed that the bill might not pass until 2027.
However, the report added that implementation might occur even later than that. “If the political changes happen after the midterm elections, the process might be altered,” the report added. “In this case, the law might come into effect in 2029.”
The debate has also drawn comments from the White House. The President of the United States, Donald Trump, earlier this month criticized banks for the delay in the passage of the legislation. He urged lawmakers to complete the US market structure as soon as possible.
With weeks to go before the critical deadline, the focus is now on Congress. The next steps in committee may determine the future of the CLARITY Act.
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