The Digital Asset Market Structure CLARITY Act is approaching a critical point, but progress has slowed. Senate discussions are now expected to extend into May, largely due to delays around stablecoin rules. Most of the major disagreements have been resolved, but timing has become the central issue.
According to reports, the legislative calendar is tight. A possible vote window in July still gives the bill a chance to pass in 2026, but there is very little room left for further delays. Missing this window could push the process back significantly.
Clarity Is Improving, But Not Complete
Jess Houlgrave, CEO of WalletConnect, spoke exclusively with Coinpedia about the bill and its implications for crypto adoption. She described the current version of the Clarity Act as “a step forward for the industry.” The bill offers clearer roles for the SEC and CFTC, defined registration paths, and better treatment for developers and users of self-custodial wallets.
However, she was careful to note that the framework is not finished. “The Senate process is still unsettled on stablecoin yield, the DeFi provisions, and how network tokens are defined in practice,” Houlgrave said. She called these pieces foundational and stressed they still need resolution.
Stablecoins Move Closer to Real Payments
On stablecoins, Houlgrave pointed to a practical shift. Building on earlier efforts like the GENIUS Act, payment providers now have a clearer path forward. “The upside is a permitted payment stablecoin framework, clearer custody rules, and a path to integrate stablecoin rails alongside existing systems,” she explained.
She added that compliance will remain a key layer, though the tooling to support it already exists. The challenge now is moving from idea to implementation.
The Biggest Unlock for Crypto Adoption
For Houlgrave, the single most important regulatory decision revolves around self-custody. She argued that giving self-custodial infrastructure “a clear, durable safe harbour” would unlock growth. She pushed back against the idea that non-custodial software should be treated like financial intermediaries.
According to her, that confusion has slowed product development and pushed innovation offshore. A clear rule here could change that.
Global Fragmentation Still a Risk
Progress is visible globally, but Houlgrave noted that jurisdictions still work with different assumptions. “Today it works despite the regulatory stack, not because of it,” she said. She highlighted the need for interoperability as crypto payments scale across borders.
If the Clarity Act moves forward, she expects immediate shifts in sentiment, even if full implementation takes time. “Clarity Act passing is the starting gun, not the finish line,” she said. Still, clearer compliance paths, institutional capital inflows, and deeper banking integration are likely to follow quickly, especially in payments and on-chain settlement.
