A tentative agreement on stablecoin rewards has renewed hope in the CLARITY Act, a key piece of cryptocurrency legislation.
Summary
- Galaxy Research warns that the cryptocurrency bill still faces critical regulatory hurdles ahead.
- Despite the recent stablecoin agreement, key issues such as DeFi regulation remain unresolved.
- The cryptocurrency industry faces uncertainty as legislative time runs out on the bill.
The agreement, which solve A major conflict between traditional banks and the digital asset industry has given a boost to the stalled legislation. However, experts warn that the CLARITY Act still faces significant challenges and must overcome a number of unresolved issues before it can be passed.
In March 2026, key lawmakers, including Sens. Thom Tillis (R-N.C.) and Angela Alsobrooks (D-Md.), reached a “tentative agreement” with White House officials on the issue of stablecoin rewards. This deal aims to address concerns raised by traditional Wall Street institutions about the rewards of stablecoins offered by exchanges. These rewards, critics argue, could lead to a mass migration of deposits from traditional banks to crypto exchanges.
Senator Tillis and Alsobrooks’ agreement was seen as an important step forward in trying to resolve the problem, as it has been one of the main obstacles preventing the passage of the CLARITY Act since January. The White House, through crypto policy advisor Patrick Witt, praised the bipartisan efforts and called the agreement an “important milestone” toward passage of the legislation.
While the agreement on stablecoin rewards is a significant step forward, the CLARITY Act still faces other hurdles. Alex Thorn, head of research at Galaxy Digital, warned that while the dispute over stablecoins is the current focus, it is not the only challenge. Thorn pointed out several other contentious issues that need to be resolved, including the regulation of decentralized finance (DeFi), developer protections, and the powers of the Securities and Exchange Commission (SEC).
Thorn emphasized that the window to pass the CLARITY Act this year is rapidly closing. He stated that if the bill does not pass the Senate Banking Committee by the end of April, the chances of it passing in 2026 would be extremely low. With little time left for discussion, Thorn and other experts warn that the clock is ticking for the CLARITY Act to move forward.
The way forward for the CLARITY Act
He CLARITY Lawwhich aims to establish comprehensive regulatory frameworks for cryptocurrencies, is considered crucial to the long-term growth of the industry. However, with the issue of stablecoin rewards addressed, lawmakers and the White House should turn their attention to the remaining obstacles that could prevent the bill from reaching the Senate floor. The legislation must pass the Senate in early May to have a realistic chance of becoming law in 2026.
