Crypto Journalist
Amin Ayan
Crypto Journalist
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The proposed US CLARITY Act, a bill intended to establish clearer rules for digital asset markets, may struggle to pass this year unless it advances quickly through Congress, according to a senior executive at Galaxy Digital.
Key Takeaways:
- The US CLARITY Act may fail to pass in 2026 if it does not clear a Senate committee by the end of April.
- Debate over stablecoin yield and broader regulatory authority remains a major obstacle for the bill.
- Competing legislative priorities in Congress are narrowing the window for crypto market structure reform.
Alex Thorn, head of firmwide research at Galaxy Digital, warned that the legislation faces a narrowing window for progress in 2026.
In a post on X on Saturday, Thorn said the bill must clear a Senate committee by the end of April to remain viable.
CLARITY Act Must Clear Committee by April to Stay Alive in 2026: Exec
“If CLARITY doesn’t pass committee by the end of April, odds of passage in 2026 become extremely low,” Thorn wrote, adding that the measure would need to reach the Senate floor by early May to maintain momentum.
The timeline challenge stems partly from competing priorities in Washington. Senate Majority Leader John Thune recently indicated that the chamber is unlikely to address digital asset market structure legislation before April, as lawmakers first focus on the SAVE America Act.
The proposed measure would require individuals to present proof of US citizenship in person when registering to vote.
While scheduling constraints present one obstacle, Thorn said policy disagreements could create additional complications for the bill.
One of the most debated provisions concerns whether stablecoin issuers should be allowed to distribute yield or rewards to users.
Traditional banking groups have warned that such incentives could draw deposits away from banks, while crypto companies argue the feature would expand the usefulness of stablecoins in payments and finance.
Thorn suggested the stablecoin rewards debate may not be the final barrier.
Other unresolved questions surrounding decentralized finance, protections for blockchain developers and the division of regulatory authority between agencies could emerge once the current dispute is resolved.
Lawmakers themselves acknowledge that compromise will likely be necessary. Angela Alsobrooks, a member of the Senate Banking Committee, recently said both crypto advocates and banking interests may need to accept concessions to move legislation forward.
Crypto Market Structure Law May Not Take Effect Until 2029: TD Cowen
Despite earlier optimism from some lawmakers that the CLARITY Act could reach Congress this spring, outside analysts remain cautious.
Investment bank TD Cowen warned earlier this year that comprehensive crypto market structure legislation could face delays until 2027 and may not take effect until 2029 if political gridlock continues.
Under that scenario, the crypto industry would need to accept that presidential election results could shape final rules, while Democrats might have to concede that conflict provisions would not apply retroactively to Trump.
Coinbase’s institutional strategy chief has also said that comprehensive crypto market structure legislation will take longer to finalize than stablecoin rules, but remains confident that bipartisan momentum will carry the bill across the finish line in 2026.
The debate has also drawn attention from the White House. Earlier this month, Donald Trump urged lawmakers to finalize a market structure framework quickly, criticizing banks for slowing the legislative process.
