"Clarity Act" Senate Review Expected in April, Stablecoin Yield Controversy Becomes Key Issue

Gate News Report, March 19 — The Senate Banking Committee plans to review the Clarity Act in the latter half of April to resolve previous delays in digital asset legislation caused by disputes over stablecoin yields and other provisions. Senator Cynthia Lummis stated that most terms are close to consensus, while Senator Bernie Moreno warned that if the bill does not pass before May, the legislative process for the national cryptocurrency market structure could face long-term stagnation.

The revised schedule puts pressure on Senate Republicans, with the two weeks in the second half of April (the 13th and 20th) potentially serving as a window for the Banking Committee to take action. If the bill passes the committee, it will still need to be coordinated with the version introduced by the Agriculture Committee in January to ensure smooth submission for full Senate consideration.

The stablecoin yield provisions remain the biggest obstacle to legislation. Banking officials are concerned that allowing stablecoin issuers to offer rewards linked to token balances could weaken the competitiveness of small bank deposits. Lummis said a compromise is forming that would remove language similar to banking products, but the final draft has not yet been made public. Senators Tim Scott, Thom Tillis, and Angela Alsobrooks are negotiating with the White House on this issue.

Additionally, decentralized finance (DeFi) provisions and ethical standards could also impact the bill’s progress. Democrats are demanding stronger national security protections and restrictions on the President, Vice President, Congress members, and senior officials issuing or promoting crypto assets and stablecoins. These demands diverge from Republican and White House positions, complicating negotiations.

If the Banking Committee completes voting in late April, the bill will move to full Senate consideration, but a key vote must be completed before Memorial Day on May 21, or the schedule could be affected by midterm election pressures. The coming weeks will be critical in determining whether the Clarity Act can advance in 2026, with compromises on stablecoin yields, DeFi exemptions, and ethical clauses directly influencing legislative success.