With the progress of the CLARITY Act, the cryptocurrency market has received a strong boost. U.S. Senators Tom Tillis and Angela Alsobrooks have reached a key agreement that has enhanced investor confidence.
As a result, the price of Bitcoin has surged, and regulatory transparency has improved. Stocks related to cryptocurrencies have also risen. Now, all eyes are on May 21.
bipartisan agreement eliminates major obstacles
After months of closed-door discussions, a compromise has been reached between parties including the White House, banks, and crypto companies. The two senators stated, “We respectfully agree to disagree,” indicating that a compromise has been achieved and they are ready to move forward.
“Our compromise prohibits stablecoin rewards similar to bank deposit interest,” while confirming “allowing crypto companies to offer other forms of customer rewards.”
However, this approach attempts to balance the concerns of banks and crypto companies.
The significance of this deal for cryptocurrency
This compromise directly addresses the concerns of traditional banks. Banks have warned that offering interest-like stablecoin rewards could siphon deposits from the banking system. The new rules eliminate this risk by limiting such reward structures.
Meanwhile, lawmakers have also pointed out the need for a balanced approach, emphasizing that the goal is “to promote compromise and avoid letting the perfect be the enemy of the good.”
This means that crypto businesses still have room for innovation while the financial system is protected.
The crypto market quickly responds to positive signals
The prediction market also reflects this change. Polymarket shows that the likelihood of the CLARITY Act becoming law by 2026 has jumped from 42% to 70%.
What happens next?
This provides a window of about two weeks for the CLARITY Act until Congress recesses on Memorial Day, May 21. If no marking occurs before this deadline, the political agenda could push the entire bill into a dead end until 2026.