The CLARITY Act, a piece of U.S. legislation aimed at establishing clearer regulatory rules for the digital asset market, faces a significant threat to its passage by 2026 if legislative momentum is not accelerated.
Alex Thorn, Head of Research at Galaxy Digital, has warned that for the bill to have a realistic chance of passing this year, it must clear Senate committee review by the end of April. Thorn emphasized the extremely tight timeline facing lawmakers in a public statement on social media.
"If the CLARITY Act does not pass committee by the end of April, the odds of it passing in 2026 are extremely low," Thorn stated.
This commentary reflects growing concerns among policy analysts and industry observers about the diminishing prospects for the CLARITY Act, particularly as Congress prioritizes other legislative agendas.
### CLARITY Act Faces Senate Schedule Pressure
The congressional calendar appears to be the most immediate challenge for the CLARITY Act. Senate leadership is currently focused on other policy priorities, and digital asset regulation has not yet captured significant attention.
Senate Majority Whip John Thune recently indicated that lawmakers are unlikely to discuss market structure legislation for digital assets before April.
The Senate is expected to prioritize the SAVE America Act, which requires individuals to provide proof of U.S. citizenship in person when registering to vote.
If the CLARITY Act fails to pass committee review by the end of April, the remaining legislative calendar may not allow sufficient time for debate, amendments, and a final vote.
Typically, congressional sessions become more intense towards the end of the year, with lawmakers shifting focus to election-related activities and other policy negotiations.
Meanwhile, blockchain networks continue to process a significant volume of transactions daily. Public blockchain explorers like Etherscan and Blockchain.com show consistent network activity, which industry participants often cite as evidence of the growing need for regulatory clarity.
### CLARITY Act Progress Hampered by Stablecoin Yield Debate
Beyond scheduling challenges, policy disagreements are also slowing the CLARITY Act's progress.
One particularly contentious provision concerns whether stablecoin issuers should be permitted to offer yields or rewards to holders.
Traditional banking institutions have expressed concerns that yield-bearing stablecoins could draw deposits away from commercial banks. Digital asset firms, conversely, argue that such incentives can improve payment systems and expand stablecoin adoption.
However, the stablecoin yield issue is just one part of the broader debate surrounding the CLARITY Act. Lawmakers are also grappling with how regulatory authority should be divided among federal agencies and how decentralized finance platforms should be defined under U.S. law.
Angela Alsobrooks is among the members of the Senate.