Momentum is building in Washington for the proposed CLARITY Act, a bipartisan crypto regulation bill that lawmakers say could bring long-awaited legal certainty to the U.S. digital asset industry. However, the bill's markup has been delayed, with sources now expecting action no earlier than the second week of May.
Senator Bernie Moreno expressed confidence that the legislation will be "done by the end of May," cautioning that failure to act could stall U.S. crypto legislation for years. Senator Cynthia Lummis echoed the urgency, stating, "We have bipartisan support… this is our moment." Meanwhile, Senator Thom Tillis faces pressure from North Carolina Blockchain to advance the bill, particularly regarding stablecoin yield rules opposed by the North Carolina Bankers Association.
Even with clearer regulation on the horizon, Patrick Wilson, General Counsel at the Solana Policy Institute, highlighted that crypto taxation remains a major friction point. "Tax and the complexities around crypto… [are] a real gating issue to folks adopting crypto at a larger scale," Wilson said. The current U.S. tax framework treats cryptocurrency as property, meaning routine transactions create taxable events, which he described as "an administrability nightmare."
A growing push exists for a de minimis tax exemption for small transactions, which Wilson supports: "Small transactions shouldn’t turn into a big headache come tax time." He also noted that regulators could ease burdens without new legislation, "With the stroke of a pen… [regulators] could really ease the burden for everyday Americans."
Industry groups argue that the GENIUS Act already addresses "shadow banking" risks tied to stablecoins, framing CLARITY as a continuation of that regulatory structure. However, Wilson emphasized that regulatory clarity alone won’t drive mass adoption unless tax compliance improves. "If we are going to realize the full potential… people need to be comfortable using it," he concluded.
