In a significant push for U.S. crypto regulation, Senator Bernie Moreno (R-Ohio) expressed confidence that the Digital Asset Market Clarity Act of 2025 (CLARITY Act) could pass through Congress as early as April. This announcement, made during an interview at the World Liberty Financial crypto summit at Mar-a-Lago, signals a potential breakthrough after prolonged legislative stalemates.
The core objective of the CLARITY Act is to establish clear national rules for digital assets, delineating regulatory authority between the Securities and Exchange Commission (SEC) for tokens deemed securities and the Commodity Futures Trading Commission (CFTC) for those treated as commodities. The bill aims to resolve critical issues surrounding token classification, trading platforms, stablecoins, and overall market structure—areas where regulatory uncertainty has historically stifled innovation and driven activity offshore.
Negotiations had previously stalled, primarily over disputes concerning stablecoins that pay interest or rewards. Traditional banks argued that such features could divert deposits from insured savings accounts, posing a threat to their business model. This impasse led even industry supporters like Coinbase CEO Brian Armstrong to temporarily withdraw support in January due to the bill's yield limits and its designation of the SEC as the primary regulator.
However, recent discussions have shown marked progress. Armstrong, who appeared alongside Senator Moreno, stated that talks among crypto companies, banks, regulators, and lawmakers were moving toward a "win-win-win" deal. Moreno emphasized that the stablecoin rewards issue, which he believes "shouldn't be part of this equation," should not derail the broader legislation. A potential compromise, as outlined in editorial commentary, involves explicitly enabling federally regulated banks to offer yield on payment stablecoins, thereby giving them a clear revenue opportunity while allowing crypto platforms to maintain customer incentive structures.
The market reacted swiftly to the renewed optimism. Prediction markets on Polymarket saw odds for the CLARITY Act passing in 2026 briefly spike to 90% before stabilizing around 72%. Proponents argue that passage would eliminate enforcement uncertainty, make compliance easier for platforms, and encourage greater institutional involvement, aligning with the administration's goal of making the U.S. the "crypto capital of the world."
With a third high-level meeting on stablecoin issues involving the White House scheduled, Senator Moreno underscored the urgency, stating that action is needed within the next 90 days to maintain momentum. He remains confident that political hurdles are minimal with Republicans in control of Congress.
