Legislative Timeline Emerges for Crypto Regulation
Senator Bernie Moreno, speaking from President Trump’s Mar-a-Lago property in Florida, told CNBC that the US CLARITY Act might clear Congress within the next month or so. “Hopefully by April,” he said during an interview that also featured Coinbase CEO Brian Armstrong.
The two were attending the World Liberty Financial crypto forum alongside representatives from the crypto industry, banking sector, and Congress. They were working, according to Armstrong, to find a solution on market structure that could satisfy multiple stakeholders.
Stablecoin Rewards Remain Sticking Point
Armstrong explained that a major hurdle in earlier discussions was the issue of stablecoin yields. Traditional banks had expressed concern that allowing interest on stablecoins could pull deposits and interest revenue away from the conventional banking system. This provision in the draft bill, which would ban interest-bearing stablecoins, was one reason Coinbase withdrew its support in January.
“One of the big issues that did come up in the past was this idea of stablecoins on rewards,” Armstrong noted. Senator Moreno acknowledged the delay, saying they got “hung up” on stablecoin rewards, which he believes “shouldn’t be part of this equation.”
But Armstrong now sees a potential compromise. “There is now a path forward, where we can get a win-win-win outcome here,” he said. He described this as a win for crypto, a win for banks, and a win for American consumers, ultimately helping to advance President Trump’s crypto agenda and make America “the crypto capital of the world.”
Regulatory Authority and Political Landscape
Another contentious aspect of the bill is its designation of the Securities and Exchange Commission as the primary regulator for the crypto industry. This regulatory positioning, combined with the stablecoin restrictions, led to Coinbase’s earlier opposition. The White House was reportedly disappointed by what they saw as Coinbase’s “unilateral” decision to pull support.
On the political front, Moreno dismissed concerns that potential Democratic gains in the midterm elections could derail the legislation. “The house isn’t going to go Democrat, and neither is the Senate,” he stated confidently. He argued that voters are focused on issues like border security, inflation, and government overreach, which he believes will keep Republicans in control.
Market Odds and Administration Confidence
The prediction market Polymarket reflected the shifting sentiment. Odds of the CLARITY Act passing in 2026 briefly jumped to 90% on Wednesday before settling around 72% at publication time.
This follows earlier optimism from White House crypto and AI czar David Sacks, who in December expressed strong confidence that the bill would pass early this year. “We are closer than ever to passing the landmark crypto market structure legislation that President Trump has called for,” Sacks said at the time, looking forward to “finishing the job in January.”
Now, with April as a new target, stakeholders continue to negotiate the details. The path forward seems clearer than it was just a month ago, though the specific compromises on stablecoins and regulatory authority remain to be fully worked out. It’s a complex balancing act between innovation, traditional finance, and consumer protection—one that lawmakers hope to resolve in the coming weeks.
