Senator Bill Hagerty has indicated that the Clarity Act, a bill aiming to reshape the regulatory landscape for digital assets, is scheduled to progress through the Senate Banking Committee in April. Speaking at the Digital Assets and Emerging Tech Policy Summit at Vanderbilt University, Hagerty conveyed cautious optimism regarding the possibility of moving the legislation along after key issues receive further attention.
Stablecoin yield negotiations open a path forward
The most persistent challenge facing the Clarity Act involves the regulation of yield offerings from stablecoins. Digital asset service providers, particularly industry leader Coinbase, previously challenged proposals that would have sharply curtailed rewards programs associated with stablecoins. Following negotiations between both crypto and banking representatives, recent updates to the bill’s language about yield mechanisms have been discussed, though the specific revisions have not been made public.
Paul Grewal, who serves as Chief Legal Officer at Coinbase—a leading U.S.-based cryptocurrency exchange founded in 2012 and known for facilitating digital asset trading—pointed to ongoing talks as promising. Grewal emphasized that a solution to the stablecoin yield debate appears imminent.
Paul Grewal conveyed confidence that “we are close to a deal” on the unresolved aspects of the legislation.
Stablecoin provisions have represented a central sticking point since the House approved the Clarity Act under its current title in July. While initial drafts drew criticism for being overly restrictive, recent collaboration between sectors signals meaningful compromise may soon unlock the legislative process.
The Clarity Act proposes shifting much of the digital asset regulatory authority from the Securities and Exchange Commission to the Commodity Futures Trading Commission. If enacted, the legislation would clarify oversight responsibilities across the broader U.S. digital asset ecosystem, which is characterized by rapid innovation and frequent regulatory questions.
Senate committee timeline and political considerations
The bill’s movement is not solely dependent on policy details; political scheduling remains a crucial factor. The Senate Banking Committee, chaired by Tim Scott, has not yet set a date for a markup session or confirmed plans for releasing an updated draft. A markup session is required before any legislation proceeds to the wider Senate floor for a vote.
Senator Cynthia Lummis, known for her support of digital asset innovation, suggested a markup could happen within the month. John Deaton, another vocal crypto advocate and current Senate candidate, warned that delays into the summer could see the bill overshadowed by campaign priorities for the midterm elections.
Hagerty acknowledged the window for action, emphasizing, “If we get this done in April, we can clearly get this taken care of before the midterms.”
In the background, super PACs focused on digital assets are increasing their activity. Fairshake, a group advocating for pro-crypto political engagement, has raised $193 million for the upcoming elections. The Fellowship PAC, which highlights its crypto-industry backing, recently appointed Tether executive Jesse Spiro as chairman while confirming fundraising in excess of $100 million this cycle.
Market sentiment reflects growing attention to legislative timing. On prediction market Polymarket, participants have recently placed a 63% probability on Donald Trump signing the Clarity Act into law during 2025, though those odds shifted throughout recent trading sessions.
