CLARITY Act Nears Senate Markup as Stablecoin Compromise Emerges

Senate negotiators reached a breakthrough on stablecoin provisions in the CLARITY Act last week, paving the way for potential committee action as early as May 11. The compromise language addresses contentious rewards programs tied to digital assets—a sticking point that had stalled progress since 2023.

Galaxy Digital's Alex Thorn noted the published text signals serious momentum, though timing remains fluid. With the Senate Banking Committee yet to formally schedule a markup, observers watch whether election-year politics will derail the bill's path to President Biden's desk.

The legislation now faces coordinated pressure from Treasury and SEC officials, who view it as a linchpin for regulating crypto market infrastructure. Market participants anticipate volatility for governance tokens like UNI and AAVE depending on final language.