CLARITY Act's Chances Plummet as Deadline Looms and Stablecoin Debate Rages On

The US Senate's CLARITY Act is facing significant challenges as it struggles to pass this year. According to Alex Thorn, head of firmwide research at Galaxy Digital, if the bill doesn't clear the committee by the end of April, its chances of being passed in 2026 become 'extremely low.'

Thorn stated that the legislation needs to reach the Senate floor by early May at the latest. He warned that 'odds diminish every day that passes,' due to limited floor time.

The main obstacle to the bill is a dispute over stablecoin rewards and their potential impact on traditional banking systems. Senator Angela Alsobrooks, a Maryland Democrat on the Senate Banking Committee, noted that both the crypto and banking lobbies will need to accept tradeoffs in order for the bill to pass.

President Donald Trump has publicly urged faster action on the CLARITY Act, criticizing banks for slowing down the Senate bill over disagreements on stablecoin yield payments. The SAVE America Act, which requires voters to show proof of US citizenship when registering to vote, is currently a priority in the Senate and is pushing the CLARITY Act further down the legislative calendar.