April Deadline Critical for CLARITY Act Passage, Galaxy Digital Executive Warns
According to Alex Thorn, Galaxy Digital's head of firmwide research, the likelihood of the CLARITY Act advancing through Congress becomes minimal if the legislation fails to progress by the conclusion of April.
A prominent cryptocurrency executive suggests that the window for passing the CLARITY Act in the United States this year could be rapidly closing, with prospects dimming significantly if the legislation fails to advance within the coming seven-week period.
According to Alex Thorn, Galaxy Digital's head of firmwide research, the prospects for the CLARITY Act making it through in 2026 drop dramatically "if CLARITY doesn't pass committee by the end of April," as he stated in a Saturday post on X.
Thorn emphasized the urgency of the timeline, noting that "This needs to hit the Senate floor by early May... floor time is running out, and odds diminish every day that passes." These comments follow remarks from US Senate Majority Leader John Thune indicating that the chamber is unlikely to address digital asset market structure legislation prior to April, given the priority being placed on the SAVE America Act, a bill mandating in-person proof of US citizenship for voter registration.
Debate over stablecoin rewards might not represent the final obstacle
According to Thorn, the primary obstacle currently impeding the CLARITY Act's progress centers on disagreements regarding whether stablecoin rewards could cause disruption to the conventional banking infrastructure — an issue that has created division between banking institutions and the cryptocurrency sector — though he cautioned that additional complications might emerge once this particular dispute reaches resolution.
Thorn warned that "It's very possible that rewards are not the 'final' hurdle but instead just the current hill the bill is dying on," highlighting potential complications surrounding DeFi, developer protections, and regulatory authority.
Angela Alsobrooks, a US Senator who serves as an influential Democrat on the Senate Banking Committee, stated recently that both the cryptocurrency industry and banking sector lobbying groups will need to accept mutual concessions. On Tuesday, she remarked that "All of us will probably walk away just a little bit unhappy."
Investment banking firm suggests CLARITY Act passage may be delayed until 2029
Certain members of Congress had previously expressed optimism regarding an April timeframe. US Senator Bernie Moreno, known for his pro-crypto stance, indicated on Feb. 19 that the CLARITY Act could potentially navigate through Congress, "hopefully by April."
Nevertheless, investment banking institution TD Cowen issued a warning in January suggesting that legislation addressing crypto market structure might not achieve passage until 2027, with implementation potentially delayed until 2029, particularly if Democratic legislators successfully postpone the vote past the midterm elections and recapture control of at least one congressional chamber.
In early March, US President Donald Trump publicly criticized banking institutions for creating delays in the Senate's cryptocurrency market structure legislation due to disputes concerning stablecoin yield payments. On Mar. 4, Trump stated, "The US needs to get Market Structure done, ASAP."