Galaxy Digital warns that the CLARITY Act still has many unresolved issues beyond stablecoins. Here's what still needs to happen for the crypto bill to pass in 2026.
A provisional agreement between White House officials and key senators on stablecoin rewards has breathed new life into the CLARITY Act, a major cryptocurrency bill currently under XEM in the U.S. Senate.
Senators Thom Tillis and Angela Alsobrooks reached this agreement with the White House in March 2026. The agreement aims to resolve the conflict between the crypto industry and traditional banks regarding stablecoin rewards offered by exchanges.
Banks argue that these incentives could cause deposits to flow away from traditional financial institutions and into crypto platforms. The agreement is designed to address that concern by adding new language to the bill.
Donald Trump 's crypto advisor, Patrick Witt , called the deal a "major milestone" but noted that much work remains to be done to finalize the stablecoin rewards issue and other outstanding matters.
Despite positive signs, Galaxy Digital 's Head of Research, Alex Thorn , issued a warning. He stated that the stablecoin reward issue is currently central, but may not be the only hurdle the bill faces.
Thorn listed several unresolved areas, including regulations related to decentralized finance, developer protection, the role of the US Securities and Exchange Commission , and ethical issues.
He posted these concerns on X , advising investors to exercise caution, although he still called the stablecoin deal "encouraging."
Time is running out.
Thorn said the CLARITY Act needs to be passed by the Senate Banking Committee before the end of April. Missing this deadline would significantly reduce the likelihood of the bill passing in 2026.
Kristin Smith , president of the Solana Institute , agrees with this view. She argues that the bill needs to be passed before August to avoid a vote in the fall, when access to senators becomes more difficult.
Smith explained that senators are typically less present in Washington starting in September, while October is dominated by midterm elections. December also doesn't guarantee a final vote.
The Senate also dedicated September to dealing with the budget bill, leaving very little time for the CLARITY Act in the second half of the year.
Current status of the bill
Senator Cynthia Lummis , a member of the Senate Banking Committee, recently indicated that a detailed XEM of the bill could take place after the Easter holidays.
She stated that the goal is to pass the bill by the end of 2026. In a post on X , Lummis said that passing the CLARITY Act would help make the U.S. the “crypto capital of the world,” in line with the vision outlined by Donald Trump .
The CLARITY Act aims to establish a comprehensive legal framework for cryptocurrencies in the United States.
According to experts monitoring the legislative process, the bill needs to be passed by the Senate before the beginning of May to have a realistic chance of becoming law this year.
