Senate Banking Committee Chairman Tim Scott has set an April session to move the stalled CLARITY Act forward. The bill, passed by the House in July 2025, has been stuck in the Senate amid fierce disputes over how to regulate stablecoin rewards and yields—a flashpoint between traditional banks and the crypto industry.
Stablecoin Yield Accord Within Reach, DeFi Hurdle Cleared
After months of negotiation, Senator Cynthia Lummis told a conference that both sides are closing in on a compromise. “We are so close this time,” she said, adding that an agreement on yield distribution could come within days. Her office confirmed that talks have narrowed significantly.
The decentralized finance (DeFi) aspect, a key concern for Democratic lawmakers worried about illicit activity, has also been resolved. Lummis said consensus on DeFi regulatory measures has been achieved, removing one of the major obstacles to the bill’s advancement.
Outstanding issues include money transmitter licensing, whether cryptocurrencies should be classified as securities or commodities, and updated ethics disclosure rules for elected officials holding digital assets.
Tight Legislative Window Under Election Pressure
Lawmakers face a compressed timeline before shifting political dynamics after the midterms. Ohio Senator Bernie Moreno, a supporter of the act, warned attendees at the summit: “If we don’t get the CLARITY Act passed by May, digital asset legislation will not pass for the foreseeable future.”
Senate Majority Leader John Thune last week confirmed the committee would push deliberations into April, matching Lummis’s forecast. The White House has reportedly hosted three meetings in 2026 with stakeholders from both crypto and banking sectors to accelerate progress—a factor seen as critical to moving the bill forward.
Lummis, who disclosed in December that she would not seek another Senate term, has made the CLARITY Act a top priority in her remaining months. On-chain prediction market Polymarket currently prices the chance of the bill becoming law in 2026 at 62%.