Galaxy Executive Suggests CLARITY Act Has Limited Chances in 2026 Without April Committee Action

The proposed US CLARITY Act, a legislative initiative aimed at clarifying regulations for digital asset markets, may encounter difficulties in passing this year unless it progresses swiftly through Congress, as indicated by a senior official at Galaxy Digital.

Key Takeaways:

• The US CLARITY Act could fail to pass in 2026 if it does not clear a Senate committee by the end of April.
• Discussions regarding stablecoin yield and broader regulatory authority continue to pose significant challenges for the bill.
• Conflicting legislative priorities in Congress are limiting the timeframe for reforming crypto market structure.

Alex Thorn, head of firmwide research at Galaxy Digital, cautioned that the legislation is facing a diminishing opportunity for advancement in 2026.

In a post on X on Saturday, Thorn stated that the bill must pass a Senate committee by the end of April to remain viable.

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

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

The timeline challenge arises partly from competing priorities in Washington. Senate Majority Leader John Thune recently suggested that the chamber is unlikely to tackle digital asset market structure legislation before April, as lawmakers initially concentrate on the SAVE America Act.

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

While scheduling limitations present one challenge, Thorn indicated that policy disagreements could introduce further complications for the bill.

One of the most contentious provisions involves whether stablecoin issuers should be permitted to offer 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

— Alex Thorn (@intangiblecoins) March 14, 2026

Traditional banking organizations have cautioned that such incentives could divert deposits from banks, while crypto firms contend that this feature would enhance the utility of stablecoins in payments and finance.

Thorn suggested that the debate over stablecoin rewards may not be the final hurdle.

Other unresolved issues regarding decentralized finance, protections for blockchain developers, and the allocation of regulatory authority among agencies could arise once the current dispute is settled.

Lawmakers themselves recognize that compromise will likely be essential. Angela Alsobrooks, a member of the Senate Banking Committee, recently stated that both crypto advocates and banking interests may need to make concessions to advance legislation.

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, external analysts remain cautious.

Investment bank TD Cowen warned earlier this year that comprehensive crypto market structure legislation could experience delays until 2027 and may not be implemented until 2029 if political gridlock persists.

In that scenario, the crypto industry would need to acknowledge that presidential election outcomes could influence final regulations, while Democrats might have to concede that conflict provisions would not apply retroactively to Trump.

Coinbase’s institutional strategy chief has also indicated that comprehensive crypto market structure legislation will take longer to finalize than stablecoin regulations, but remains optimistic that bipartisan support will propel the bill to completion in 2026.

The discussion has also garnered attention from the White House. Earlier this month, Donald Trump urged lawmakers to expedite the finalization of a market structure framework, criticizing banks for hindering the legislative process.

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