Key Points
- Senator Bill Hagerty anticipates the CLARITY Act will advance to Senate Banking Committee proceedings in April
- The legislation proposes transferring primary crypto regulation from the SEC to the CFTC
- Discussions around stablecoin yield provisions have progressed significantly, with industry participants expressing optimism
- Senate Banking Committee Chairman Tim Scott has yet to announce a specific markup date
- Prediction markets on Polymarket indicate 63% probability of presidential signature this year
Senator Bill Hagerty announced Monday his expectation that the CLARITY Act will proceed through Senate Banking Committee review during the coming weeks, establishing April as the target timeframe for action on the digital asset framework legislation.
Speaking at Vanderbilt University’s Digital Assets and Emerging Tech Policy Summit, Hagerty indicated the committee could approve the measure before April concludes, contingent on resolving remaining points of contention.
“There’s still a lot more work to do,” Hagerty said, but added that none of the outstanding issues were “insurmountable.”
The CLARITY Act received House approval in July under its current designation. Senate progress has encountered obstacles related to stablecoin yield provisions, ethical considerations, and concerns raised by segments of the digital asset community.
The proposed legislation seeks to reallocate cryptocurrency market oversight primarily from the Securities and Exchange Commission to the Commodity Futures Trading Commission. Dual agency jurisdiction requires approval from both the Senate Agriculture Committee and the Senate Banking Committee.
The Agriculture Committee moved its version forward in January. The Banking Committee must complete markup proceedings before floor consideration can commence.
Stablecoin Yield Negotiations Show Forward Movement
The stablecoin yield provision has represented the most significant challenge. Digital asset firms, particularly Coinbase, expressed opposition to earlier draft language that established extensive restrictions on stablecoin rewards programs.
Sources from both cryptocurrency and traditional banking sectors informed Crypto in America last week that stakeholders have examined revised stablecoin yield text and maintain cautious optimism regarding potential agreement. The specific content of the updated language remains undisclosed.
Coinbase Chief Legal Officer Paul Grewal expressed confidence that negotiators would reach consensus. He informed media representatives last week that legislators were “close to a deal” on unresolved matters.
Committee Markup Scheduling Remains Pending
Senate Banking Committee Chairman Tim Scott has not established a markup session date. The committee has similarly not indicated whether it intends to publish updated draft text for public review.
Pro-digital asset Senator Cynthia Lummis has suggested markup could occur during April. Pro-XRP attorney and Senate candidate John Deaton cautioned that delays extending into summer months would likely result in congressional attention shifting toward midterm election campaigns, potentially dooming the legislation.
Hagerty acknowledged the political clock. “If we get this done in April, we can clearly get this taken care of before the midterms,” he said.
Cryptocurrency-focused political action committees have begun positioning for 2026 electoral contests. Fairshake disclosed a $193 million fund for the November midterm cycle. The Fellowship PAC, which reports securing over $100 million from crypto-aligned contributors, announced Tether executive Jesse Spiro as chairman this week.
Polymarket currently assigns 63% probability to Trump signing the CLARITY Act into law during 2025, though these odds recently declined to 50%.
