Senate leaders plan to mark up the CLARITY Act in late April, but stablecoin yield disputes and other political hurdles still stand in the way. Lawmakers now face a narrow window in May to keep the crypto market structure bill moving
The Senate’s next steps on the CLARITY Act have come into focus after Senator Cynthia Lummis said the Banking Committee plans to hold a markup in the second half of April. The update came as lawmakers, lobbyists, and industry groups continued to debate stablecoin yield, agency authority, and ethics rules.
Senator Bernie Moreno also warned that if Congress does not move the bill by May, the broader digital asset effort could lose momentum ahead of the 2026 midterm cycle.
Senate pushes for April markup as calendar tightens
Lummis said at the DC Blockchain Summit that the Senate Banking Committee expects to hold a markup on the CLARITY Act in the second half of April. A markup is the formal stage where lawmakers offer amendments and vote on whether to move a bill forward. The committee had previously planned a markup in January, but that session was canceled after Coinbase withdrew support.
Congress has only two working weeks left in the second half of April, covering the weeks of April 13 and April 20. That limited schedule has increased pressure on Senate negotiators. If the Banking Committee approves the bill in that window, lawmakers would still need to reconcile it with the version that passed the Senate Agriculture Committee in January on a party-line vote.
Moreno tied the timing issue to a wider political deadline. He said, “If we don’t get the CLARITY Act passed by May, digital asset legislation will not pass for the foreseeable future.” His warning reflected concern that the November midterm elections could change committee leadership and shift legislative priorities before Congress can complete the process.
Stablecoin yield remains the main sticking point
The most disputed issue remains stablecoin yield, which refers to reward programs tied to dollar-backed tokens. Banking groups argue that such products could draw deposits away from community and regional banks. Crypto firms, however, say limits on rewards would reduce competition and narrow consumer choice in the digital asset market.
Senate Banking Committee Chair Tim Scott said he expected draft compromise language on the matter by the end of the week. Lummis said she had not yet reviewed the latest text, though she added that she believed the issue was close to resolution. Senators Thom Tillis and Angela Alsobrooks have been working directly with the White House on the language.
The White House has already held three meetings in 2026 with both banking and crypto representatives. Sources close to the talks said negotiators were considering a framework that would restrict products that resemble insured deposits while allowing other reward structures to continue. Coinbase Chief Legal Officer Paul Grewal also pushed back on restrictions, writing, “You can’t be for CLARITY and against rewards.”
Broader political hurdles cloud the bill’s path
Even if lawmakers settle the yield fight, the bill still faces other obstacles. Senator Kirsten Gillibrand said the Agriculture Committee portion needs major revision before it can win bipartisan backing. She also repeated her call for ethics rules that would bar members of Congress, the president, and the vice president from issuing or promoting cryptocurrencies or stablecoins.
Outside analysts have also lowered expectations for passage this year. TD Cowen put the odds near 30%, while Galaxy Research placed them closer to 50-50. Both pointed to other pressure points, including CFTC staffing, prediction-market disputes, anti-money-laundering concerns tied to Iran, and political scrutiny around World Liberty Financial.
The House passed its version of the Digital Asset Market Clarity Act in July 2025 by a 294-134 vote. Still, the Senate must act quickly. Congress also begins its Memorial Day recess on May 21, and any further delay could leave the bill without enough floor time before the election season takes over.
