The US CLARITY Act, aimed at modernizing crypto regulation, faces a critical window: if not passed by April’s end, its chances for 2026 collapse, according to Galaxy Digital's Alex Thorn.
Thorn emphasized the bill must reach the Senate floor by early May, warning that delays diminish momentum daily. The legislation now stalls over debates on stablecoin rewards-seen as disruptive to traditional banks-though deeper issues may emerge around DeFi and regulatory authority.
Senator Angela Alsobrooks stressed both crypto and banking lobbies must compromise. President Donald Trump recently criticized banks for delaying progress, urging immediate market structure reform.
Investment bank TD Cowen projects the bill could be delayed until 2029 if Democratic lawmakers delay voting beyond midterm elections.