CLARITY Act Faces Slim Chances in 2026 Without April Committee Progress, Galaxy Executive Warns
The proposed Digital Asset Market Structure CLARITY Act, which aims to create clearer rules for digital asset markets in the United States, could struggle to pass this year unless it quickly moves through Congress.
According to Alex Thorn, head of firmwide research at Galaxy Digital, the bill is running out of time in the 2026 legislative calendar.
Key Takeaways
The CLARITY Act may fail to pass in 2026 if it does not clear a Senate committee by the end of April.
Disagreements over stablecoin yield and regulatory authority remain major sticking points.
Competing legislative priorities in Washington are shrinking the window for crypto market structure reform.
April Committee Deadline Could Be Critical
In a post on X (Twitter), Thorn said the bill needs to clear a Senate committee by the end of April to remain viable this year.
“If CLARITY doesn’t pass committee by the end of April, odds of passage in 2026 become extremely low,” Thorn wrote. He added that the bill would also need to reach the Senate floor by early May to keep its legislative momentum.
Part of the challenge is timing.
John Thune, the Senate Majority Leader, recently indicated that lawmakers are unlikely to focus on digital asset market structure legislation until April. Congress is currently prioritizing other proposals, including the SAVE America Act, which would require individuals to show proof of U.S. citizenship in person when registering to vote.
Stablecoin Debate Remains a Major Obstacle
Beyond scheduling issues, policy disagreements could also slow progress on the CLARITY Act.
One of the most controversial topics involves whether stablecoin issuers should be allowed to offer yield or rewards to users.
Traditional banking groups have warned that offering yield on stablecoins could pull deposits away from banks, potentially disrupting the financial system. On the other hand, many crypto companies argue that allowing rewards would make stablecoins more useful for payments and financial services.
Thorn suggested that even if this issue is resolved, other disputes could emerge.
Questions surrounding decentralized finance (DeFi), legal protections for blockchain developers, and the division of regulatory authority between agencies may still need to be addressed before lawmakers can finalize the bill.
Members of Congress acknowledge that compromise will likely be necessary.
For example, Angela Alsobrooks, a member of the United States Senate Banking Committee, recently said both the crypto industry and traditional banking sector may need to accept concessions to move legislation forward.
Analysts Warn Full Crypto Regulation Could Take Years
Even if the CLARITY Act gains momentum this year, some analysts believe broader crypto regulation could take much longer.
Investment bank TD Cowen previously warned that comprehensive market structure legislation might be delayed until 2027, with full implementation potentially not occurring until 2029 if political gridlock continues.
Under that scenario, the outcome of future presidential elections could significantly influence how the final rules are written.
Meanwhile, executives at Coinbase have said that broader crypto market structure legislation will likely take longer to finalize than stablecoin rules. Still, they remain optimistic that bipartisan support could eventually push the bill across the finish line sometime in 2026.
