Key Takeaways
- Senator Bill Hagerty anticipates the CLARITY Act will advance to the Senate Banking Committee by April’s end
- The legislation aims to transfer primary crypto regulation from the SEC to the CFTC
- Stablecoin reward provisions have created the primary roadblock, though recent negotiations show promise
- Banking Committee Chair Tim Scott hasn’t confirmed a markup schedule
- Prediction markets estimate a 63% probability of President Trump enacting the bill in 2025
Speaking Monday at Vanderbilt University’s Digital Assets and Emerging Tech Policy Summit, Senator Bill Hagerty outlined an aggressive April timeline for advancing the CLARITY Act through the Senate Banking Committee.
The Tennessee senator indicated the landmark crypto regulation bill could successfully navigate the banking committee before April concludes, contingent on resolving lingering policy disputes.
“There’s still a lot more work to do,” Hagerty acknowledged, though he emphasized that all remaining challenges were “insurmountable.”
The CLARITY Act secured House passage last July under its current designation. Senate progress has been hampered by disagreements surrounding stablecoin interest payments, ethical considerations, and resistance from segments of the digital asset sector.
The proposed legislation would fundamentally restructure cryptocurrency oversight, transferring principal regulatory authority from the Securities and Exchange Commission to the Commodity Futures Trading Commission. Due to jurisdictional considerations involving both federal agencies, the measure requires approval from both the Senate Agriculture and Banking Committees.
While the Agriculture Committee cleared its version in January, the Banking Committee has yet to conduct its markup session, a prerequisite for any Senate floor consideration.
Progress on Stablecoin Rewards Controversy
The most significant impediment has centered on how stablecoins can distribute yields to holders. Digital asset firms, notably Coinbase, previously opposed draft language that implemented sweeping restrictions on stablecoin interest programs.
According to sources from both the cryptocurrency and traditional banking sectors who briefed Crypto in America last week, stakeholders have examined revised stablecoin yield provisions and express cautious optimism about reaching consensus. The specific wording of the updated text remains confidential.
Paul Grewal, Coinbase’s Chief Legal Officer, expressed confidence that negotiators would finalize an agreement. In comments to media last week, he characterized lawmakers as being “close to a deal” on outstanding matters.
Committee Scheduling Remains Uncertain
Tim Scott, who chairs the Senate Banking Committee, has yet to announce when the markup session will occur. The committee also hasn’t indicated whether it intends to publish updated legislative text for public review.
Senator Cynthia Lummis, a prominent crypto advocate, has suggested the markup could take place this month. However, John Deaton, a pro-XRP attorney running for Senate, cautioned that delays extending into summer would likely cause the bill to lose momentum as Congress pivots to midterm campaign season, potentially dooming the legislation.
Hagerty recognized the time 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 already positioning for the 2026 election cycle. Fairshake disclosed a $193 million fund available for the November midterm contests. The Fellowship PAC, which claims to have secured more than $100 million from crypto industry supporters, announced Tether executive Jesse Spiro as its new chair this week.
Prediction platform Polymarket currently assigns a 63% probability to President Trump signing the CLARITY Act before year-end, though these odds briefly dropped to 50% in recent weeks.
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