Key Points

  • April markup planned for CLARITY Act following Easter recess
  • Stablecoin yield dispute nearing final resolution
  • DeFi regulatory concerns resolved through negotiations
  • Senate Banking Committee approval required before full chamber consideration
  • May deadline crucial for passage before midterm election complications

Speaking at Wednesday’s DC Blockchain Summit, Senator Cynthia Lummis revealed that the CLARITY Act approaches a critical Senate Banking Committee markup scheduled for April, following the Easter congressional recess.

The legislation secured passage in the US House of Representatives during July 2025. Senate progress stalled primarily due to ongoing tensions between banking institutions and cryptocurrency stakeholders regarding stablecoin yield provisions.

“We are so close this time,” Lummis addressed Summit participants. Her office indicated that negotiators expect a stablecoin yield agreement “in the next few days.”

According to Lummis, the White House convened three separate meetings with representatives from both the crypto and banking sectors throughout 2026 to facilitate legislative advancement. She emphasized that this administration’s engagement significantly improves prospects for successful passage.

The Senate Banking Committee, under Chairman Tim Scott’s leadership, previously delayed a January markup session. Meanwhile, the Senate Agriculture Committee moved its companion version forward in January, though reconciliation between both versions remains necessary before floor consideration.

Breakthrough on Stablecoin Yield and DeFi Frameworks

Months of disagreement between banking industry groups and cryptocurrency advocates centered on the regulatory treatment of stablecoin yield and reward mechanisms.

Lummis indicated substantial advancement on this front. “We think we’ve got it,” she stated regarding the yield question.

Decentralized finance protocols presented additional complications, especially for Democratic members concerned about illicit finance exposure. Lummis confirmed these deliberations have reached conclusion.

Remaining challenges include money transmitter licensing requirements and the classification framework distinguishing securities from commodities among digital assets. Ethics provisions governing cryptocurrency holdings by elected officials also require final refinement.

Midterm Election Timeline Creates Urgency

Senator Bernie Moreno of Ohio emphasized time constraints during the same summit. “If we don’t get the CLARITY Act passed by May, digital asset legislation will not pass for the foreseeable future,” he warned.

Lummis characterized this legislative session as potentially the final viable opportunity for comprehensive market structure regulation. November’s 2026 midterm elections threaten to alter congressional composition, potentially complicating passage efforts.

Senate Majority Leader John Thune indicated last week that he anticipates the banking committee will proceed with consideration beginning in April. His projection matches Lummis’s markup schedule.

Lummis announced her retirement plans in December, making this regulatory effort among her concluding legislative priorities.

Polymarket prediction markets currently assess the probability of the CLARITY Act receiving presidential signature during 2026 at 62%.