CLARITY Act Deadlocked Before Congress Easter Recess

The main U.S. crypto bill went into Easter recess without a vote. The CLARITY Act, designed to establish federal rules for digital assets, is stuck in a four-way deadlock between the crypto industry, banks, regulators, and structural critics. The Senate returns on April 13, and the Banking Committee is planning a markup in the second half of the month.

Four Sides, Each With Veto Power

The deadlock was created by four groups with opposing interests. The crypto industry (Coinbase, Stripe) wants clear rules allowing stablecoin yield and flexible DeFi regulation. The banking lobby insists on banning stablecoin yields to prevent deposits from leaving the traditional system. The SEC and CFTC are already acting independently through joint memoranda. Structural critics argue the bill removes crypto from investor protections.

Each side can block the process. That is why Senators Thom Tillis (R-NC) and Angela Alsobrooks (D-MD) spent two months on compromise language that still failed to satisfy everyone.

Stablecoin Yield: The Core Conflict

The central question is whether crypto platforms can pay interest on USDT and other stablecoin balances. The Tillis-Alsobrooks compromise bans passive yield on stablecoin balances but allows activity-based rewards: payments, transfers, and platform usage. The SEC, CFTC, and Treasury will have 12 months to define what exactly is permitted.

Coinbase and Stripe Push Back

Coinbase publicly opposed the proposed text. For the company, this is a $1.35 billion question: that is how much it earned from stablecoins in 2025, representing 19.6% of total revenue. Coinbase argues that banks earn interest on deposit reserves without similar restrictions, making the yield ban an uneven playing field.

Stripe, which has been actively building stablecoin infrastructure, also objected. Coinbase Chief Legal Officer Paul Grewal said a deal is "very close," but the final text is still not ready.

Racing the Clock Before November Elections

The Banking Committee returns from recess on April 13 and plans a markup in the second half of the month. Alex Thorn of Galaxy Digital warned that if the bill doesn't clear committee by late April, midterm politics will consume all of the Senate's time. At the Bitcoin Conference 2026, scheduled for April, announcements about the bill's fate are expected.

For the stablecoin market, which has reached $316 billion and already surpassed ACH payment volumes ($7.2 trillion in February), the lack of regulatory clarity means more months of uncertainty. Coinbase, Stripe, and dozens of DeFi protocols are waiting for an answer: whether they can continue competing with banks for the yield market.

What This Means for Crypto

The CLARITY Act is not just a technical bill. It will determine who controls the trillion-dollar stablecoin market: crypto companies or traditional banks. For those currently selling USDT for hryvnia, the vote outcome could reshape the entire OTC trading market before year's end.