{"id":46911,"date":"2026-05-08T05:39:23","date_gmt":"2026-05-08T05:39:23","guid":{"rendered":"https:\/\/www.vtmarketsglobal.com\/en\/uncategorized\/46911\/"},"modified":"2026-05-08T05:39:23","modified_gmt":"2026-05-08T05:39:23","slug":"senate-ends-delay-the-clarity-act-advances-for-crypto-markets","status":"publish","type":"post","link":"https:\/\/www.vtmarketsglobal.com\/en\/featured\/46911\/","title":{"rendered":"Senate Ends Delay: The CLARITY Act Advances for Crypto Markets"},"content":{"rendered":"\n
\"\"
The Clarity Act is moving again, targetting 4th July.<\/strong><\/figcaption><\/figure>\n\n\n\n

Where We Were<\/h3>\n\n\n\n

The CLARITY Act passed the US House in July 2025<\/a> and then sat. For most of late 2025 and early 2026, the bill stalled in the Senate over a single sticking point: whether crypto firms could pay yield on stablecoin balances. Banks objected. Crypto firms pushed back. Negotiations dragged. Markets reacted to the idea<\/em> of regulatory clarity rather than the substance of it.<\/p>\n\n\n\n

That stalemate just ended.<\/p>\n\n\n\n

What Changed in the First Week of May<\/h3>\n\n\n\n

On May 2, 2026, Senators Thom Tillis (R-NC) and Angela Alsobrooks (D-MD) released a bipartisan compromise on the stablecoin yield question<\/a>. The agreement bans yield structures that function like traditional bank deposits, but allows rewards tied to active use of stablecoins, effectively a “buy and use” model, rather than a passive “buy and hold” approach.<\/p>\n\n\n\n

The reaction was immediate. Coinbase CEO Brian Armstrong’s two-word response<\/a> on social media: “Mark it up.”<\/em> Circle endorsed the deal without qualification. By May 4, Senator Cynthia Lummis confirmed the text<\/a> was final. By May 6, White House digital-assets adviser Patrick Witt told Consensus Miami<\/a> the yield compromise “is closed.”<\/em><\/p>\n\n\n\n

In other words: the bill is moving again.<\/strong><\/p>\n\n\n\n

Recap on What CLARITY Does<\/strong><\/h2>\n\n\n\n

The bill’s significance is structural. It splits regulatory authority between the SEC and CFTC, introduces a “mature blockchain” test that determines which tokens qualify as digital commodities, and creates new registration paths for crypto exchanges, brokers, and dealers. (Full breakdown in the FAQ below.)<\/em><\/p>\n\n\n\n

The yield compromise unblocked the bill. The substance is what comes next.<\/p>\n\n\n\n

Simplified timeline on record:<\/h3>\n\n\n\n
\"\"\/<\/figure>\n\n\n\n

Witt called July 4 “a tremendous birthday present for America, celebrating our 250th<\/a>“.<\/em> That’s the optimistic case. Galaxy’s research desk<\/a> still puts overall 2026 passage odds at roughly 50-50, citing the tight Senate calendar. Prediction markets sit higher, around 67%<\/a>.<\/p>\n\n\n\n

The timeline is genuine but fragile. Each stage is a potential volatility catalyst, and a potential delay point.<\/p>\n\n\n\n

How Markets Reflected Sentiments<\/h2>\n\n\n\n

In our previous assessment of CLARITY<\/a>, altcoins showed stronger sensitivity to legislative progress than Bitcoin. The first week of May tested that view but it’s worth tracking what came before, because the same bill produced opposite reactions within six weeks.<\/p>\n\n\n\n

In late March, an earlier draft of the CLARITY Act proposed strict limits on stablecoin rewards \u2014 banning anything “economically equivalent to interest.” The market reaction was brutal: Circle shares fell about 20%<\/a> on March 24, its worst single day on record. Coinbase shares fell about 10%.<\/p>\n\n\n\n

The May 2 compromise softened that language and preserved activity-based rewards, which is why the May 4 reaction was the mirror image:<\/p>\n\n\n\n