The proposed US CLARITY Act, designed to provide clearer regulatory rules for the cryptocurrency industry, could face extremely low chances of passing this year if it fails to move through committee before the end of April.Alex thorn say the legislative calendar is becoming increasingly tight, leaving little time for debate and approval.
The concern comes as the Senate is expected to prioritize other legislation in the coming weeks. With floor time limited, delays in committee approval could prevent the bill from reaching a full Senate vote before early May, which many analysts consider the latest realistic window for progress in 2026.
Stablecoin Rewards Debate Creates Major Regulatory Challenge
One of the most visible obstacles surrounding the CLARITY Act is the debate over stablecoin reward mechanisms. Some policymakers and banking groups argue that allowing yield or rewards on stablecoin holdings could disrupt the traditional banking system.
This disagreement has created divisions between the banking sector and parts of the crypto industry. While many believe resolving the stablecoin rewards issue could move the bill forward, some analysts warn it may only be the current challenge rather than the final one.
Additional Regulatory Concerns May Slow Progress
Even if lawmakers reach a compromise on stablecoin rewards, other policy questions could emerge. Areas such as decentralized finance oversight, legal protections for developers, and which agencies would regulate various parts of the crypto market could all become sticking points.
Lawmakers involved in discussions have acknowledged that compromise will likely be required from both the crypto industry and traditional financial institutions.
While some supporters previously hoped the legislation could advance quickly, several policy analysts believe the timeline could stretch much further. In scenarios where the bill fails to progress this year, broader crypto market structure regulation in the United States might not be finalized until later in the decade.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.