U.S. Senate Majority Leader Says Clarity Act Unlikely to Advance Before April

Odaily News U.S. Senate Majority Leader John Thune stated that the crypto market structure bill, the Clarity Act, is unlikely to pass the Senate Banking Committee before April. This bill aims to establish a comprehensive regulatory framework for digital assets in the United States. While the House of Representatives has previously advanced this legislation, discussions in the Senate are ongoing.

The main obstacle to the bill's progress lies in the issue of stablecoin yields, with the crypto industry and the banking sector yet to reach a compromise. The banking industry believes that allowing stablecoins to offer yields could lead to deposits flowing out of traditional institutions. However, Patrick Witt, Executive Director of the White House President's Digital Asset Advisory Committee, stated this week that compliant stablecoins could potentially attract new global capital to the U.S. banking system.

Furthermore, the Senate passed a comprehensive housing bill on the same day that includes a provision prohibiting the Federal Reserve from issuing a CBDC. This bill will now be sent to the House of Representatives for further consideration and a vote. Currently, lawmakers are prioritizing the advancement of President Trump's SAVE America Act, with Thune indicating that the Senate will vote on this bill next week.

JPMorgan analysts previously described the potential passage of crypto market structure legislation as a "positive catalyst" for the industry in the second half of the year. Earlier this month, Trump also stated on Truth Social that passing the Clarity Act is the "next step to get the job done" following the GENIUS Act.