US Crypto Bill Faces Renewed Speculation for May Passage
Speculation has resurfaced that the U.S. Senate could break its gridlock on a comprehensive crypto market structure bill by May 2026. The bill, H.R. 3633, passed the House in July 2025 but has stalled in the Senate over the 60-vote threshold. Bipartisan negotiators are reportedly working to resolve disagreements on the definitions of digital commodities and securities to provide regulatory clarity for the industry.
- The primary obstacle to the bill's passage in the Senate is a dispute over whether stablecoin issuers should be permitted to offer yield or rewards on their tokens. Banking industry representatives are advocating for a complete ban on stablecoin rewards, arguing that such offerings resemble interest-bearing deposit accounts and should be regulated accordingly. - The White House has intervened in the stalled negotiations, convening meetings with crypto industry leaders from companies like Coinbase and Ripple, as well as representatives from major banking institutions. A March 1, 2026, deadline has reportedly been set by the administration for the negotiating parties to reach a compromise on the stablecoin yield issue. - The Digital Asset Market Clarity Act (CLARITY Act) is separate from, but related to, the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act, which has already been signed into law and provides a regulatory framework for stablecoins. The current debate centers on provisions within the CLARITY Act that would amend or build upon the existing stablecoin regulations established by the GENIUS Act. - Key figures in the Senate negotiations include Senate Banking Committee Chairman Tim Scott and Senator Bernie Moreno, who has been actively involved in discussions with crypto industry participants. SEC Chair Paul Atkins has also weighed in, emphasizing the need for a solid legal foundation from Congress for crypto regulation. - The CLARITY Act would establish distinct regulatory purviews for the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). Digital assets classified as "digital commodities" would fall under the CFTC's jurisdiction, while those deemed "investment contract assets" would be regulated by the SEC. - The bill introduces the concept of a "mature blockchain," defined as a system that is not controlled by a single person or group. This definition is crucial as it would influence how a digital asset is classified and regulated. - Crypto advocacy groups are actively lobbying for the inclusion of the Blockchain Regulatory Certainty Act (BRCA) within the CLARITY Act. This provision would offer protections to software developers and infrastructure providers who do not have custody of user funds, exempting them from being treated as traditional financial intermediaries. - Despite the current stalemate, some lawmakers and industry leaders remain optimistic about the bill's prospects. Ripple CEO Brad Garlinghouse has suggested a high probability of the bill passing by April 2026, and Coinbase CEO Brian Armstrong, after initially withdrawing support, has expressed cautious optimism about reaching a compromise.
