The CLARITY Act Enters Recess Without Resolution: What It Means for April

The CLARITY Act has entered the Senate recess period without a final agreement, leaving key issues unresolved — particularly around stablecoin yield rules. The Senate Banking Committee is now expected to take up the bill again in late April, when lawmakers return from recess.

Current Status of the Bill

The Senate’s last working session before the Easter break was March 26. From March 30 to April 9, the Senate is holding only pro forma sessions, meaning no legislative business or voting is taking place. Full sessions will resume on April 13.

As the Senate entered recess, the CLARITY Act still relied on the March 23 draft text, which includes strict rules on stablecoin yields. A revised version had been expected before the recess, but it was not released. However, negotiations are continuing behind the scenes, and an updated draft is expected during the recess period after further discussions with banks and crypto industry stakeholders.

The Stablecoin Yield Dispute

The main issue revolves around stablecoin yield. The current draft:

• Bans passive yield on stablecoin balances
• Allows only limited activity-based rewards
• Gives the SEC, CFTC, and Treasury 12 months to define what types of rewards are allowed

This version is considered bank-friendly because it prevents stablecoins from functioning like interest-bearing bank accounts. However, crypto companies — especially Coinbase — have strongly opposed this provision because it directly affects their revenue models tied to stablecoin rewards.

Political and Industry Dynamics

The negotiations are not starting from a neutral position. The current draft already reflects the banking sector’s preferred structure, which gives banks a stronger position going into April negotiations.

At the same time, signals from the White House suggest that some senior technology advisors support moving forward with the bill even with the yield restrictions. This indicates that policymakers may prioritize creating a regulatory framework for digital assets, even if it requires compromises from parts of the crypto industry.

Why Coinbase Is Opposing the Bill

Coinbase’s opposition is largely based on its stablecoin business model. A significant portion of the company’s revenue comes from stablecoin-related income, particularly from distributing rewards generated from reserve interest. The current draft would restrict that model, which explains why Coinbase is pushing for changes to the yield provisions.

Because of this disagreement, the bill has stalled twice, increasing political pressure on Coinbase from other parts of the crypto industry that want the bill passed for regulatory clarity.

Reaction From the Crypto Community

Some crypto communities, particularly XRP supporters, are frustrated because the CLARITY Act would formally establish legal classifications for digital assets, which could provide long-term regulatory clarity for several cryptocurrencies. Delays in passing the bill are therefore seen as slowing regulatory progress.

This frustration has led to online campaigns and criticism directed at companies perceived to be blocking the bill’s progress.

What to Expect in April

The Senate Banking Committee is expected to review and mark up the bill in the last two weeks of April. Before that happens, lawmakers and industry groups will continue negotiating key issues, including:

• Stablecoin yield rules
• DeFi regulations
• Token classification
• Tokenization regulations

The outcome of these negotiations will determine whether the CLARITY Act moves forward, is revised significantly, or faces further delays.