CLARITY Act April Deadline: What Banks and Crypto Investors Need to Know

TLDR

• The CLARITY Act is a US crypto regulation bill that has passed the House and is now in the Senate
• Key sticking point is whether stablecoins should be allowed to offer yield to customers
• Banks need the bill more than crypto firms, according to former CFTC chair Chris Giancarlo
• If the bill fails, the SEC and CFTC may write their own rules as a workaround
• An April 3 target date is driving urgency, with a possible Senate markup before end of March

The CLARITY Act is a crypto market structure bill that passed the US House of Representatives in July 2025. It has since been referred to the Senate Committee on Banking, Housing, and Urban Affairs. Lawmakers are pushing toward an April 3 target date to advance the legislation.

The bill sets out which federal agencies would oversee digital assets. It requires crypto platforms and token issuers to register and follow reporting standards.

Negotiations have stalled over a core dispute. Banks, crypto firms, and lawmakers have not agreed on whether stablecoins should be allowed to pay yield to customers.

Crypto firms say regulated yield products would expand financial access. They argue that clear rules are better than outright restrictions.

Banks see it differently. They warn that loosely defined yield programs could draw deposits away from traditional institutions and create systemic risk.

Banking groups want any yield or staking services to be tightly regulated and tied directly to verified investment activity. The two sides have not yet found common ground.

Why Banks Have More to Lose

Former CFTC chairman Chris Giancarlo said US banks are the ones who need this bill most. Speaking on The Wolf Of All Streets Podcast, he said crypto firms will keep building regardless of what Congress does.

Giancarlo warned that if US banks wait too long, countries in Asia and Europe will build digital financial infrastructure first. American banks could then find themselves locked out of the new system.

He said banks need to be at the front of this shift, not playing catch-up later.

What Happens If the Bill Fails

The bill still needs a full Senate vote before going to President Donald Trump for signature. Trump has urged Congress to move quickly, saying the bill would strengthen US leadership in digital assets.

Analysts at JPMorgan have projected the bill could pass by mid-year 2025.

Regulatory Workarounds on the Table

If the CLARITY Act does not pass, Giancarlo said SEC chair Paul Atkins and CFTC head Mike Selig would likely step in to write rules independently.

He noted that agency-written rules would not carry the same long-term legal weight as legislation. But they could provide a workable framework in the short term.

A markup hearing was postponed in January, which delayed committee action. Some lawmakers are now considering scheduling a markup before the end of March.

If the committee moves forward, a broader Senate vote could follow in time for the April deadline.

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