CLARITY Act Nears April Markup as Key Crypto Rules Shift

The US Senate is preparing to move forward with the Digital Asset Market CLARITY Act, with lawmakers targeting a committee markup in the second half of April. 

Recent statements from Senator Cynthia Lummis suggest final legislative text could be released within days, signaling that negotiations have entered their final phase.

However, the bill advancing toward markup looks materially different from earlier drafts.

The CLARITY Act Has Changed a Lot

Over the past month, lawmakers have resolved the most contentious issue: stablecoin yield. 

The latest compromise effectively bans passive yield on stablecoin balances, aligning with demands from the banking sector. 

In exchange, the bill is expected to allow limited, activity-based rewards tied to payments or platform usage.

This marks a clear shift from earlier proposals that left room for broader yield distribution. Crypto firms had pushed to preserve yield as a core user incentive, but that position has largely been sacrificed to secure bipartisan support.

Crypto Industry Sacrificed Passive Income for DeFi Protection

At the same time, lawmakers have moved to strengthen protections for decentralized finance (DeFi). Updated language is expected to clarify that developers and non-custodial protocols are not treated as financial intermediaries.

This addresses industry concerns that earlier drafts could impose bank-like compliance obligations on software builders.

Meanwhile, the bill’s core structure remains intact. It still establishes a formal split between the Commodity Futures Trading Commission and the Securities and Exchange Commission, giving the CFTC authority over digital commodities and preserving SEC oversight of investment contract assets.

Even so, political pressure is shaping the timeline. Senator Bernie Moreno has warned that if the bill does not pass by May, broader digital asset legislation may stall until after the 2026 midterm cycle.

As a result, lawmakers are now balancing speed with compromise. The CLARITY Act may deliver long-sought regulatory clarity, but only after the industry gives up some of its most contested features.