TLDR
- Senator Bill Hagerty anticipates the CLARITY Act advancing to Senate Banking Committee markup in April
- Legislation aims to transfer primary crypto regulation from the SEC to the CFTC
- Negotiations over stablecoin yield provisions showing signs of progress after months of gridlock
- Senate Banking Committee Chairman Tim Scott hasn’t announced a specific markup date
- Prediction markets show 63% probability of presidential signature in 2025
Senator Bill Hagerty revealed Monday that he anticipates the CLARITY Act advancing through the Senate Banking Committee in the coming weeks, establishing April as a crucial month for the landmark digital asset legislation.
During his remarks at Vanderbilt University’s Digital Assets and Emerging Tech Policy Summit, Hagerty outlined an optimistic timeline that could see the banking committee complete its work before April concludes, provided negotiators can finalize remaining points of contention.
“There’s still a lot more work to do,” Hagerty acknowledged, while emphasizing that none of the pending matters were “insurmountable.”
The CLARITY Act secured House passage in July under its current name. Senate progress has been hampered by negotiations surrounding stablecoin yield mechanisms, ethical considerations, and resistance from segments of the digital asset sector.
The legislation seeks to reallocate primary authority for crypto market oversight from the Securities and Exchange Commission to the Commodity Futures Trading Commission. This dual-agency involvement requires passage through both the Senate Agriculture Committee and the Senate Banking Committee.
The Agriculture Committee approved its portion of the bill in January. The Banking Committee must still conduct its markup session before the full Senate can consider the measure.
Stablecoin Yield Standoff Shows Signs of Breaking
The stablecoin yield issue has represented the most significant impediment to progress. Digital asset firms, including Coinbase, had resisted previous language that imposed sweeping restrictions on stablecoin rewards programs.
Sources from both the cryptocurrency and traditional banking sectors informed Crypto in America last week that both camps have examined revised stablecoin yield language and express cautious optimism about reaching consensus. The specific wording of the updated provisions remains confidential.
Coinbase’s Chief Legal Officer Paul Grewal expressed confidence that negotiators would finalize an agreement. He indicated to media representatives last week that lawmakers were “close to a deal” on outstanding matters.
Committee Markup Scheduling Remains Unclear
Senate Banking Committee Chairman Tim Scott hasn’t designated a specific date for the markup session. The committee has also remained silent on whether it intends to publish a revised draft for public review.
Pro-cryptocurrency Senator Cynthia Lummis has suggested a markup might occur this month. However, pro-XRP attorney and Senate candidate John Deaton cautioned that if the bill encounters delays extending into summer, congressional attention will likely pivot toward midterm elections, potentially dooming the legislation.
Hagerty recognized the political timeline constraints. “If we get this done in April, we can clearly get this taken care of before the midterms,” he stated.
Cryptocurrency-focused political action committees are already positioning for 2026. Fairshake disclosed a $193 million reserve for the November midterm cycle. The Fellowship PAC, which claims to have secured over $100 million from crypto-aligned contributors, announced Tether executive Jesse Spiro as its new chair this week.
Polymarket currently forecasts a 63% probability of Trump signing the CLARITY Act into law during 2025, though those odds recently declined to as low as 50%.
