Galaxy Digital’s Head of Research, Alex Thorn, has warned that the CLARITY Act may still face a delay, as it remains uncertain whether there are other key hurdles besides the stablecoin rewards issue. Thorn pointed out to market participants that the stablecoin yield is the current hurdle, but it may not be the only one that could impede the crypto bill’s progress. The White House and key senators have reached a deal on stablecoin rewards, with plans to include a language in the CLARITY Act that they aim will resolve the clash between the crypto industry and banks. The crypto-bank clash had been the primary reason the Senate Banking Committee delayed the markup it had scheduled earlier this year.
However, as Thorn warned, some other key issues may arise once the banks and the crypto industry settle disputes over stablecoin rewards. He had previously noted that there are “very likely” to be other hurdles, such as DeFi, developers’ protections, SEC powers, and even ethics. Trump’s crypto advisor, Patrick Witt, said there is still more work to be done to close out the stablecoin rewards and other “outstanding issues.” However, he described the deal as a “major milestone” towards passing the CLARITY Act. During an interview with Crypto In America, Kristin Smith, the president of the Solana Institute, explained why it was important for the CLARITY Act to pass by August to avoid relying on a fall vote.
She noted that senators are typically more occupied starting in September, and it could be worse this time around, given that this is an election year. Smith said that these senators are unavailable in Washington in October during the midterm elections and that there is no guarantee of a final vote in December. Meanwhile, she noted that the Senate uses September to handle the appropriations bill. Senator Cynthia Lummis, a member of the committee, said recently that the crypto bill’s markup could hold after the Easter recess. She also said that they were looking to pass the bill by the end of this year.
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