The US CLARITY Act is facing significant challenges, with a deadline looming for its advancement in Congress. According to Alex Thorn, head of firmwide research at Galaxy Digital, if the bill does not progress through committee by the end of April, its chances of passing could drop drastically, possibly delaying any approval until 2026.
Senate Majority Leader John Thune indicated that the Senate will prioritize the SAVE America Act, which requires proof of US citizenship for voter registration, before addressing the CLARITY Act. Thorn highlighted ongoing debates around stablecoin rewards as a major sticking point, which could complicate the bill's progression even further.
Recent comments from Angela Alsobrooks, a prominent Democrat on the Senate Banking Committee, suggested that compromises will be necessary from both crypto and banking advocates. Meanwhile, TD Cowen has projected that the legislation might not become effective until 2029, particularly if Democratic lawmakers delay the vote post-midterm elections.