An agreement in principle on stablecoin rewards has renewed hope for the CLARITY Act, a key piece of cryptocurrency legislation.
Summary
- Galaxy Research warns that the crypto bill still faces critical regulatory hurdles.
- Despite the recent stablecoin deal, key issues such as DeFi regulation remain unresolved.
- The crypto industry faces uncertainty as legislative time runs out on the bill.
The agreement, which resolves a major conflict between traditional banks and the digital assets sector, provided a boost to the stalled legislation. However, experts caution that the CLARITY Act still faces significant challenges and must overcome a series of unresolved issues before it can pass.
In March 2026, key lawmakers, including Senators Thom Tillis (R-N.C.) and Angela Alsobrooks (D-Md.), reached a “tentative agreement” with White House officials on the issue of stablecoin awards. This agreement aims to address concerns raised by traditional Wall Street institutions regarding the stable rewards offered by exchanges. Critics say these rewards could lead to a mass migration of deposits from traditional banks to crypto exchanges.
The agreement from Senators Tillis and Alsobrooks was seen as a major breakthrough in the fight to resolve the issue, as it has been one of the main stumbling blocks preventing passage of the CLARITY Act since January. The White House, through crypto policy advisor Patrick Witt, praised the bipartisan efforts, calling the agreement a “major milestone” toward passing the legislation.
Although the agreement on stable rewards is an important development, the CLARITY Act still faces other obstacles. Alex Thorn, head of research at Galaxy Digital, warned that while the stablecoin dispute is the focus of current attention, it is not the only challenge. Thorn highlighted several other controversial topics that need to be resolved, including the regulation of decentralized finance (DeFi), developer protections, and the powers of the Securities and Exchange Commission (SEC).
Thorn pointed out that the window for passing the CLARITY Act this year is closing quickly. He said that if the bill does not pass the Senate Banking Committee by the end of April, the chances of its passage in 2026 would become extremely low. With limited time remaining for discussion, Thorn and other experts warn that time is running out for the CLARITY Act to move forward.
The road ahead for the CLARITY Act
The CLARITY Act, which aims to establish comprehensive regulatory frameworks for cryptocurrencies, is seen as crucial to the long-term growth of the sector. However, with the issue of stable rewards now resolved, lawmakers and the White House must turn their attention to remaining hurdles that could prevent the bill from reaching the Senate. The bill must pass the Senate in early May to have a realistic chance of becoming law in 2026.
