Key Takeaways
- Senator Bill Hagerty sets April timeline for CLARITY Act advancement through Senate Banking Committee
- Proposed legislation would transfer primary crypto regulatory authority from SEC to CFTC
- Industry sources indicate progress on contentious stablecoin yield provisions that previously stalled negotiations
- Senate Banking Committee Chairman Tim Scott yet to announce official markup date
- Polymarket traders currently price 63% probability of presidential signature in 2025
Senator Bill Hagerty announced Monday his expectation that the CLARITY Act will advance through the Senate Banking Committee during the coming weeks, establishing an April timeframe for the comprehensive crypto market structure legislation.
Speaking at Vanderbilt University’s Digital Assets and Emerging Tech Policy Summit, Hagerty indicated the bill could successfully navigate the banking committee before April concludes if negotiators can resolve lingering concerns.
“There’s still a lot more work to do,” Hagerty acknowledged, though he emphasized that none of the remaining obstacles were “insurmountable.”
The CLARITY Act secured House passage in July under its current designation. Senate progress has encountered roadblocks stemming from disputes over stablecoin yield mechanisms, ethical considerations, and resistance from certain segments within the cryptocurrency sector.
The legislation calls for reallocating crypto market oversight responsibilities primarily from the Securities and Exchange Commission to the Commodity Futures Trading Commission. The dual-agency involvement necessitates approval from both the Senate Agriculture Committee and the Senate Banking Committee.
The Agriculture Committee approved its iteration of the bill in January. The Banking Committee must still conduct a markup session before the legislation can proceed to a floor vote.
Stablecoin Yield Controversy Shows Signs of Breakthrough
The stablecoin yield provision has emerged as the most significant hurdle. Digital asset companies, prominently including Coinbase, objected to previous draft language that imposed sweeping restrictions on stablecoin reward programs.
Cryptocurrency and financial sector insiders informed Crypto in America last week that both negotiating parties have examined revised stablecoin yield text and express cautious optimism about reaching consensus. The specific updated language remains confidential.
Coinbase’s Chief Legal Officer Paul Grewal expressed confidence that an agreement would materialize. He informed reporters last week that legislators were “close to a deal” on outstanding matters.
Official Markup Schedule Remains Pending
Senate Banking Committee Chairman Tim Scott has not yet announced a specific date for the markup session. The committee has also not indicated whether it intends to publish a revised draft for public review.
Pro-cryptocurrency Senator Cynthia Lummis has suggested a markup could occur during this month. However, pro-XRP attorney and Senate candidate John Deaton cautioned that if the legislation experiences delays into summer, Congress will probably redirect attention toward midterm election activities and the bill risks collapse.
Hagerty recognized the political timeline pressures. “If we get this done in April, we can clearly get this taken care of before the midterms,” he stated.
Crypto-supporting political action committees are already positioning for 2026 campaigns. Fairshake disclosed a $193 million fundraising reserve for the November midterm elections. The Fellowship PAC, which claims to have accumulated over $100 million from crypto-aligned contributors, appointed Tether executive Jesse Spiro as chair this week.
Polymarket currently assigns 63% probability to Trump signing the CLARITY Act into law during 2025, though those odds recently declined to as low as 50%.
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