CLARITY Act Faces 2026 Deadline: Must Clear Senate Committee by April or Risk Failure, Galaxy Exec Warns

The US CLARITY Act faces imminent failure in 2026 unless it advances through a key Senate committee by the end of April, Galaxy Digital's Head of Firmwide Research Alex Thorn warned Saturday. Thorn's urgent assessment highlights that the landmark digital asset market structure bill is running out of time, with debate over stablecoin yield and regulatory authority creating major legislative obstacles amid competing Congressional priorities.

CLARITY Act Must Clear Committee by April to Stay Alive in 2026: Exec

“If CLARITY doesn’t pass committee by the end of April, odds of passage in 2026 become extremely low,” Thorn wrote, adding that the measure would need to reach the Senate floor by early May to maintain momentum.

The timeline challenge stems partly from competing priorities in Washington. Senate Majority Leader John Thune recently indicated that the chamber is unlikely to address digital asset market structure legislation before April, as lawmakers first focus on the SAVE America Act.

The proposed measure would require individuals to present proof of US citizenship in person when registering to vote.

While scheduling constraints present one obstacle, Thorn said policy disagreements could create additional complications for the bill.

One of the most debated provisions concerns whether stablecoin issuers should be allowed to distribute yield or rewards to users.

if CLARITY doesn't pass committee by end of april, odds of passage in 2026 become extremely low. this needs to hit the senate floor by early may… floor time is running out and odds diminish every day that passes

the framing right now is that the dispute over stablecoins… pic.twitter.com/tEejEsmUi9

Traditional banking groups have warned that such incentives could draw deposits away from banks, while crypto companies argue the feature would expand the usefulness of stablecoins in payments and finance.

Thorn suggested the stablecoin rewards debate may not be the final barrier.

Other unresolved questions surrounding decentralized finance, protections for blockchain developers and the division of regulatory authority between agencies could emerge once the current dispute is resolved.

Lawmakers themselves acknowledge that compromise will likely be necessary. Angela Alsobrooks, a member of the Senate Banking Committee, recently said both crypto advocates and banking interests may need to accept concessions to move legislation forward.

Crypto Market Structure Law May Not Take Effect Until 2029: TD Cowen

Despite earlier optimism from some lawmakers that the CLARITY Act could reach Congress this spring, outside analysts remain cautious.

Investment bank TD Cowen warned earlier this year that comprehensive crypto market structure legislation could face delays until 2027 and may not take effect until 2029 if political gridlock continues.

Under that scenario, the crypto industry would need to accept that presidential election results could shape final rules, while Democrats might have to concede that conflict provisions would not apply retroactively to Trump.

Coinbase’s institutional strategy chief has also said that comprehensive crypto market structure legislation will take longer to finalize than stablecoin rules, but remains confident that bipartisan momentum will carry the bill across the finish line in 2026.

The debate has also drawn attention from the White House. Earlier this month, Donald Trump urged lawmakers to finalize a market structure framework quickly, criticizing banks for slowing the legislative process.