TLDR
- Senator Bill Hagerty anticipates the CLARITY Act will advance to Senate Banking Committee markup in April
- The proposed legislation aims to transfer primary crypto regulatory authority from SEC to CFTC
- Disagreements over stablecoin yield provisions have created the primary roadblock, though recent developments suggest progress
- Senate Banking Committee Chairman Tim Scott hasn’t confirmed a specific markup date
- Current Polymarket predictions place 63% probability on Trump signing the legislation in 2025
During an appearance Monday at the Digital Assets and Emerging Tech Policy Summit hosted by Vanderbilt University, Senator Bill Hagerty outlined expectations for the CLARITY Act to advance through Senate Banking Committee proceedings within the coming weeks, establishing April as a potential milestone for the landmark crypto regulatory framework.
According to Hagerty’s remarks at the summit, the legislation could successfully navigate the banking committee process before April concludes, contingent upon resolving several remaining points of contention.
“There’s still a lot more work to do,” Hagerty said, but added that none of the outstanding issues were “insurmountable.”
The CLARITY Act secured House approval in July under its current designation. Senate progress has encountered obstacles stemming from disputes regarding stablecoin interest payments, ethical considerations, and resistance from certain segments of the cryptocurrency sector.
The proposed framework would fundamentally restructure crypto market supervision by transferring primary regulatory jurisdiction from the Securities and Exchange Commission to the Commodity Futures Trading Commission. Due to the involvement of both regulatory bodies, the measure requires endorsement from the Senate Agriculture Committee alongside the Senate Banking Committee.
The Agriculture Committee completed its review and advanced the bill in January. The Banking Committee must still conduct its markup session before floor consideration can proceed.
Stablecoin Yield Dispute Moves Toward Resolution
Disagreements surrounding stablecoin interest provisions have represented the most significant obstacle to advancement. Cryptocurrency enterprises, notably Coinbase, had objected to previous draft language implementing sweeping restrictions on stablecoin reward programs.
Sources from both the cryptocurrency and traditional banking sectors informed Crypto in America last week that stakeholders examined revised stablecoin yield provisions and maintain cautious optimism regarding a potential compromise. The specific content of the modified language hasn’t been publicly released.
Paul Grewal, Coinbase’s Chief Legal Officer, expressed confidence that negotiators would reach an agreement. He informed media representatives last week that legislators were approaching consensus on the outstanding matters.
Markup Date Still Unknown
Senate Banking Committee Chairman Tim Scott hasn’t announced a scheduled markup date. The committee similarly hasn’t indicated whether a revised public draft will be circulated.
Senator Cynthia Lummis, known for her pro-cryptocurrency stance, has suggested a markup session might occur during the current month. However, pro-XRP attorney and Senate candidate John Deaton cautioned that delays extending into summer months could prove fatal, as congressional attention typically pivots toward midterm electoral campaigns, potentially derailing the measure.
Hagerty acknowledged the political clock. “If we get this done in April, we can clearly get this taken care of before the midterms,” he said.
Political action committees aligned with cryptocurrency interests are actively positioning for 2026 electoral cycles. Fairshake disclosed a $193 million funding reserve designated for November midterm efforts. The Fellowship PAC, which claims to have secured over $100 million from crypto-supporting donors, announced the appointment of Tether executive Jesse Spiro as chairman this week.
Current Polymarket odds place the probability of President Trump signing the CLARITY Act during 2025 at 63%, although these predictions recently declined to as low as 50%.
