The CLARITY Act, America’s biggest attempt at crypto regulation, is inching toward the finish line. But as Senate Banking Committee Chairman Tim Scott told Fox Business’s Maria Bartiromo on Thursday, there is still one critical piece missing: full industry buy-in.
Republicans and Democrats Are Actually Agreeing
In a rare show of bipartisan unity, Scott confirmed that both Republicans and Democrats are now aligned on the CLARITY Act, with the White House also on board. For a bill this complex and this consequential, that is no small thing.
“We now have Republicans and Democrats working together. The White House agrees as well,” Scott said. “I am very optimistic about where we are.”
The bill, which could come out as early as Easter, is designed to give crypto a proper legal home in the United States, separating digital commodities from securities and handing the CFTC clear authority over assets like Bitcoin and Ethereum.
The Stablecoin Yield Fight
The thorniest issue holding things up is stablecoin yields. The latest version of the bill bans passive yield on stablecoins but allows activity-based rewards, a compromise that has not gone down smoothly with everyone at the table.
Coinbase, one of the most powerful names in crypto, has pushed back on the language. Circle, the issuer of USDC, saw its stock drop 20% following reports of the compromise. Scott acknowledged the tension but insisted all players are still engaged.
“I spoke with Coinbase. Everyone is still at the table,” he said. “Work to be done.”
He was also careful to push back on the idea that banks are winning the argument over crypto platforms on the rewards question. “We are talking about an apple and an orange, not an apple versus an apple,” Scott said, stressing that stablecoin accounts and FDIC-insured bank accounts are fundamentally different products and should not be regulated identically.
Why This Matters Beyond Crypto
Scott framed the CLARITY Act as something far bigger than a crypto bill. In his view, getting this legislation right is about keeping America economically dominant on the world stage. “This is the first time ever we have tried to deal with such a historic piece of legislation,” he said. “It will keep America as the most dominant player in the world economically.”
The Clock Is Ticking
With a potential Senate Banking Committee markup pencilled in between April 13 and 20, the window for passing the CLARITY Act this year is narrow. Miss the May deadline for floor votes and the bill likely gets pushed to 2027.
Scott sounded confident but realistic. “This is hard. Threading the needle is always difficult the first time. It gets better and better.”
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