TLDR
- Senator Bill Hagerty anticipates Senate Banking Committee action on the CLARITY Act during April
- Proposed legislation would transfer primary crypto regulation from SEC to CFTC
- Stablecoin yield provisions have created the primary roadblock, though recent discussions show promise
- Senate Banking Committee Chairman Tim Scott hasn’t confirmed a markup schedule
- Polymarket shows 63% probability of Trump signing the legislation in 2025
During remarks at Vanderbilt University on Monday, Senator Bill Hagerty outlined his expectations for the CLARITY Act to advance through Senate Banking Committee proceedings in the coming weeks, establishing an April timeframe for the groundbreaking cryptocurrency legislation.
Speaking at the Digital Assets and Emerging Tech Policy Summit, Hagerty indicated the legislation could successfully navigate the banking committee by late April, contingent upon resolving pending matters.
“There’s still a lot more work to do,” Hagerty acknowledged, while emphasizing that none of the remaining challenges were “insurmountable.”
The CLARITY Act secured House passage in July under its current designation. Senate progress has encountered setbacks stemming from disputes regarding stablecoin yield provisions, ethical considerations, and resistance from certain segments of the cryptocurrency sector.
The proposed framework calls for reassigning cryptocurrency market supervision primarily from the Securities and Exchange Commission to the Commodity Futures Trading Commission. Due to the involvement of both regulatory bodies, the measure requires clearance from the Senate Agriculture Committee and the Senate Banking Committee.
The Agriculture Committee moved its iteration forward in January. The Banking Committee must still conduct a markup session before floor consideration becomes possible.
Stablecoin Yield Controversy Shows Signs of Progress
The stablecoin yield issue has represented the most significant obstacle. Digital asset firms, notably Coinbase, had resisted previous draft language that imposed sweeping restrictions on stablecoin rewards programs.
Sources from the cryptocurrency and banking sectors informed Crypto in America last week that stakeholders have examined revised stablecoin yield text and express measured optimism about reaching consensus. The specific contents of the updated provisions remain undisclosed.
Coinbase’s Chief Legal Officer Paul Grewal expressed confidence that an agreement would materialize. Speaking with media representatives last week, he noted lawmakers were “close to a deal” on outstanding matters.
Committee Markup Timing Remains Uncertain
Senate Banking Committee Chairman Tim Scott hasn’t announced when the markup will occur. The committee hasn’t indicated whether it intends to publish a revised draft for public review.
Pro-cryptocurrency Senator Cynthia Lummis has suggested a markup might occur during April. However, pro-XRP attorney and Senate candidate John Deaton cautioned that postponement into summer could derail the measure, as Congress typically pivots to midterm campaign priorities.
Hagerty recognized the electoral calendar constraints. “If we get this done in April, we can clearly get this taken care of before the midterms,” he stated.
Cryptocurrency-focused political action committees are positioning themselves for 2026 races. Fairshake disclosed a $193 million treasury for the November midterm cycle. The Fellowship PAC, which claims to have secured over $100 million from crypto-aligned contributors, announced Tether executive Jesse Spiro as chair this week.
Polymarket presently estimates a 63% likelihood that Trump will sign the CLARITY Act into law during 2025, although these probabilities recently declined to 50%.
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