CLARITY Act Faces Senate Gridlock as Crypto Regulation Hangs in Balance
The CLARITY Act, poised to redefine securities and commodities in the digital asset space, risks indefinite delay as Senate negotiations stall. Despite passing the House with overwhelming support (294 votes) in July 2025, the bill remains trapped in committee disputes. A banking amendment prohibiting yield on stablecoins has emerged as the primary roadblock, with Coinbase estimating a 20% revenue threat from the provision.
Even if yield compromises are reached, deeper conflicts over DeFi oversight and SEC jurisdictional boundaries loom. The bill must clear committee by April 2026 to avoid procedural oblivion. Meanwhile, the swift passage of the Genius Act for stablecoins underscores the uneven pace of crypto legislation.