Key Takeaways
- Sen. Bill Hagerty anticipates the CLARITY Act will advance through Senate Banking Committee by end of April
- Legislation would transfer primary crypto regulation authority from SEC to CFTC
- Stablecoin reward provisions have created the primary bottleneck, though recent discussions show promise
- Committee Chair Tim Scott hasn’t announced when markup will occur
- Prediction markets show 63% probability of presidential signature in 2025
During remarks at Vanderbilt University’s Digital Assets and Emerging Tech Policy Summit on Monday, Senator Bill Hagerty laid out an ambitious April timeline for advancing the CLARITY Act through the Senate Banking Committee.
The Tennessee senator indicated that if negotiators can resolve pending matters, the landmark crypto market structure legislation could successfully navigate the banking committee before April concludes.
While acknowledging “there’s still a lot more work to do,” Hagerty expressed confidence that none of the remaining challenges were “insurmountable.”
The CLARITY Act secured House passage in July under its current designation. Senate progress has encountered obstacles centered on stablecoin compensation mechanisms, ethical considerations, and resistance from certain industry participants.
At its core, the legislation seeks to reorganize digital asset supervision by transferring primary jurisdiction from the Securities and Exchange Commission to the Commodity Futures Trading Commission. This dual-agency involvement requires green lights from both the Senate Agriculture Committee and Senate Banking Committee.
While the Agriculture Committee approved its portion in January, the Banking Committee’s markup session remains pending before any full Senate vote can proceed.
Progress on Contentious Stablecoin Rewards Language
Provisions governing stablecoin yield generation have emerged as the central obstacle. Digital asset firms, notably Coinbase, had rejected previous drafting that imposed sweeping restrictions on stablecoin interest payments.
Industry insiders from both crypto and traditional banking sectors informed Crypto in America last week that stakeholders have examined revised stablecoin yield text and maintain guarded optimism about reaching consensus. The specific wording under consideration remains confidential.
Coinbase’s top legal executive Paul Grewal expressed strong optimism about finalizing terms. Speaking with media representatives last week, he characterized lawmakers as being “close to a deal” on unresolved components.
Committee Markup Timing Remains Uncertain
Senate Banking Committee leader Tim Scott hasn’t established when the markup session will take place. The committee has similarly remained silent on whether updated draft language will be made publicly available beforehand.
Digital asset advocate Senator Cynthia Lummis has suggested April could see the markup occur. However, pro-XRP attorney and Senate contender John Deaton cautioned that delays extending into summer months risk derailing the bill entirely as Congress pivots toward midterm campaign season.
Recognizing the time constraints, Hagerty noted: “If we get this done in April, we can clearly get this taken care of before the midterms.”
Crypto-focused political action committees are already positioning for 2026 electoral battles. Fairshake disclosed a $193 million reserve for November’s midterm contests. The Fellowship PAC, claiming over $100 million in crypto-backed fundraising, announced Tether executive Jesse Spiro as its new chairman this week.
Current Polymarket odds place the likelihood of President Trump signing the CLARITY Act before year-end at 63%, though these projections recently dropped to 50% before recovering.
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