The ongoing US-Iran conflict is seen as a factor that could slow the bill’s progress
Pro-XRP lawyer John Deaton has raised fresh concerns about the fate of the CLARITY Act saying the landmark U.S. crypto bill may not pass this year if progress stalls before summer.
Speaking on the Paul Barron Network Deaton warned that if the bill drags into the summer months the Senate will likely shift its full attention to midterm elections in November. At that point meaningful legislative action on crypto regulation becomes far less likely.
Deaton noted that if midterms go badly for Republicans and Democrats take control of Congress Senator Elizabeth Warren could become chair of the Senate Banking Committee. He said the bill’s chances of passing in that scenario would be “slim to none.”
The ongoing U.S.-Iran conflict is also seen as a factor that could slow the bill’s progress as lawmakers focus on war funding and foreign policy debates.
A key sticking point in the bill involves stablecoin rewards. The current version of the CLARITY Act bans passive yield payments on stablecoin balances and limits rewards to activity-based incentives only. Deaton called the restriction concerning but urged the industry to push the bill forward anyway. He echoed the stance of Ripple CEO Brad Garlinghouse and White House crypto adviser Patrik Witt that “perfection cannot get in the way of good.”
The bill passed the House in July 2025 with a strong 294-134 bipartisan vote but has been stuck in the Senate since January after a scheduled markup was pulled following pushback from industry leaders.
Crypto lobbyists remain cautiously optimistic. Blockchain Association CEO Summer Mersinger said the bill still has “meaningful bipartisan momentum” and that passing it would strengthen U.S. competitiveness and provide certainty for consumers and innovators.
Whether Congress can act before the political window closes remains the central question for the entire crypto industry in 2026.
