The U.S. Senate is set to reconvene, and the Clarity Act crypto bill will move into a critical review: stablecoin yields and SEC/CFTC jurisdiction remain to be resolved

The U.S. Senate will reconvene on April 13, and one of the first priorities after it returns will be the Clarity Act — a bill aimed at establishing a comprehensive regulatory framework for the cryptocurrency market. According to PYMNTS, Senator Hagerty expects the bill could be sent to the full chamber for consideration this month, but multiple controversies still need to be resolved.

What the Clarity Act seeks to address

The core goal of the Clarity Act (full name: Digital Asset Market Clarity Act) is to clarify how the jurisdictional boundaries between the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) apply to digital assets. For a long time, the two agencies have been unclear about which tokens qualify as securities and which qualify as commodities, leaving the industry at a loss when it comes to compliance.

The bill would set clear classification standards for crypto assets, while also establishing consumer protection rules and market structure regulations. It is viewed as the second pillar of U.S. crypto oversight, following the GENIUS Act (the stablecoin bill).

Stablecoin yield controversy reaches a compromise

The bill’s biggest flashpoint — stablecoin yield rules — saw a breakthrough at the end of March. Republican Senator Thom Tillis and Democratic Senator Angela Alsobrooks reached a compromise: it would ban crypto exchanges and platforms from paying interest or providing yield on stablecoin balances, but would allow other forms of rewards and incentives for specific stablecoin-related activities.

This compromise removed the biggest obstacle to moving the bill forward, but the chair of the Banking Committee, Cynthia Lummis, said hearings are expected to be held in the second half of April.

Issues still to be resolved

Even with the stablecoin yield issue addressed, the bill still faces several unresolved disputes:

Ethics concerns — some lawmakers are calling for the inclusion of conflict-of-interest provisions addressing political figures and their family members holding crypto assets

Illegal finance — specific requirements for anti–money laundering and sanctions compliance are still being negotiated

De-regulation of community banks — some senators are trying to attach bank-industry provisions unrelated to crypto to the bill, sparking controversy

The key window is before the end of July

To get legislation completed before the August congressional recess, the Banking Committee must complete the bill’s markup by the end of April. If it misses this window, the bill would be pushed to the fall, when the political environment could be even more complicated.

For the crypto industry, the Clarity Act and GENIUS Act together form the foundational regulatory framework for U.S. digital assets. The former addresses issues related to market structure and jurisdiction, while the latter addresses stablecoin regulation. If both bills can be completed into law this year, they would provide the clearest legal environment for the U.S. crypto market since its inception.

This article The U.S. Senate’s reconvening is imminent, and the Clarity Act crypto bill will enter a critical review: stablecoin yield and SEC/CFTC jurisdiction to be resolved first appeared on Chain News ABMedia.