Stablecoin Rewards Agreement Reached, But CLARITY Act Faces Uncertain Future

A major breakthrough has been made in the ongoing efforts to pass the CLARITY Act, a landmark cryptocurrency legislation. After weeks of stalemate, key lawmakers and the White House have reached an agreement in principle on stablecoin rewards.

However, industry experts are cautioning that this development is not without its challenges. According to Alex Thorn, head of firmwide research at Galaxy Digital, the crypto industry should temper its enthusiasm for now.

The issue of stablecoin rewards had been a major sticking point in the Senate Banking Committee. Traditional Wall Street groups had lobbied heavily against them, arguing that earning rewards would trigger widespread 'deposit flight' from standard bank accounts.

Despite this breakthrough, several other contentious topics remain unresolved, including DeFi regulation, developer protections, SEC powers, and ethics rules. Thorn emphasized that the window for passing comprehensive crypto legislation this year is rapidly closing.

'If CLARITY doesn't pass committee by the end of April, odds of passage in 2026 become extremely low,' Thorn warned.