CLARITY Act Crypto Bill Stalls Amid Four-Way Deadlock
The US crypto market structure bill enters Easter recess unresolved as industry backers, banks, regulators, and structural critics remain at an impasse over stablecoin yield rules.
The Digital Asset Market CLARITY Act, the most significant piece of US crypto legislation in years, has stalled in Congress as four competing factions fight over stablecoin yield rules, agency oversight, and the future of decentralized finance.
What Happened
The CLARITY Act entered the Senate's Easter recess without a revised draft, despite weeks of negotiations. The bill now sits at the center of a four-way standoff between crypto industry backers pushing for broad market access, bank-aligned critics seeking to protect traditional finance, regulators demanding stronger oversight tools, and structural critics questioning whether the bill preserves enough investor protections.
The core dispute centers on stablecoin yield. Coinbase generated $1.35 billion in stablecoin revenue in 2025, making a blanket prohibition on stablecoin yield an existential threat for the exchange. Senators Thom Tillis and Angela Alsobrooks reached a compromise that Cynthia Lummis described as "99% resolved," allowing activity-based rewards tied to payments, transfers, and wallet use while barring passive yield on held stablecoins. However, Coinbase and Stripe have both objected to the bank-friendly text.
Why It Matters
The Senate Banking Committee's markup is now targeted for the second half of April, with only two working weeks available before May. Senator Bernie Moreno warned at the DC Blockchain Summit that if the bill does not pass by May, digital asset legislation will not move forward "for the foreseeable future" as midterm election politics take over.
Beyond stablecoin yield, unresolved issues include DeFi provisions, token classification criteria, and tokenization treatment. The outcome will determine whether crypto firms can compete directly with traditional financial services or remain confined to a regulatory gray zone shaped by enforcement actions and agency guidance.
What to Watch
The key dates are mid-to-late April, when the Senate Banking Committee returns from recess and can schedule the markup. Market participants should monitor whether the stablecoin yield compromise holds and whether outstanding issues on DeFi and token classification reach resolution before the deadline.
Key Takeaways
The CLARITY Act remains the best chance for comprehensive US crypto regulation this cycle, but the four-way deadlock and tight legislative calendar make its passage far from certain. The next two weeks will be decisive.
