At a significant event in Washington on April 22, 2026, Senator Bernie Moreno (R-Ohio) issued a direct ultimatum regarding the CLARITY Act, emphasizing the necessity for the legislation to pass through Congress by the end of May. This assertion has turned into a critical deadline for the U.S. crypto industry, which has long been awaiting regulatory clarity. Moreno warned that failing to meet this target could lead to the bill being shelved indefinitely, revealing the precarious status of crypto market structure legislation in the country.
In his speech, Moreno also addressed concerns about the influence of bank lobbying on the ongoing discussions, particularly regarding stablecoin yields. He dismissed much of the opposition as “noise,” insisting that banks must evolve and innovate rather than hinder legislative progress. This commentary comes as the North Carolina Bankers Association urged member banks to directly contact Senator Thom Tillis (R-N.C.) to voice their opposition to a stablecoin yield compromise, with confirmation of this move provided by Terrett.
Adding to the urgency, the blockchain industry group, The Digital Chamber, dispatched a formal letter to Senate leaders insisting that the bill advance to the markup stage without delay. This combination of industry action underlines the critical timeline faced by lawmakers.
Currently, the CLARITY Act must navigate through five sequential steps before reaching the desk of President Trump: a markup by the Senate Banking Committee, a full Senate floor vote requiring a minimum of 60 votes, reconciliation with the Senate Agriculture Committee’s version (which passed committee back in January 2026), alignment with the House’s earlier bill from July 2025, and ultimately, obtaining the president’s signature. Notably, while the House passed the bill 294–134 last year, the Senate has yet to cast any formal votes.
Congress is scheduled to adjourn for the Memorial Day recess on May 21. According to Galaxy Research analyst Alex Thorn, with approximately 18 working weeks remaining before the midterm recess in October, every week of delay shrinks the opportunity for Senate consideration, making it increasingly difficult for the bill to pass within this legislative session.
Emphasizing the urgency, Moreno stated at the DC Blockchain Summit in March, “If we don’t get the CLARITY Act passed by May, digital asset legislation will not pass for the foreseeable future.”
Senate Banking Committee Chair Tim Scott (R-SC) is aiming for a markup in the latter half of April. However, the committee’s focus has been diverted to the confirmation hearing for Kevin Warsh, Trump’s nominee to succeed current Fed Chair Jerome Powell, whose term expires on May 15. Each day the Warsh hearing occupies the Senate floor translates to additional time lost for the markup.
Senator Cynthia Lummis (R-Wyo) confirmed that the provisions related to decentralized finance (DeFi) are finalized, and efforts are still directed toward an April markup. Coinbase’s Chief Policy Officer, Faryar Shirzad, expressed optimism for an April markup and a May Senate floor vote. If the markup does not occur by the end of April, the bill will only have three weeks to secure Democratic support and pass before the impending recess.
Observations on Polymarket indicated a slight increase in the odds of the CLARITY Act passing in 2026, rising from 38% to 46% after Moreno’s declaration, though many stakeholders remain cautious.
Amidst the legislative tensions, Treasury Secretary Scott Bessent has echoed the concern that regulatory inaction could channel digital asset innovation toward countries like Dubai and Singapore, which are actively courting U.S. crypto investments. Meanwhile, Y Combinator recently made its first stablecoin investment, and the first quarter of 2026 witnessed a record $297 billion in global venture funding, with a rising portion allocated to crypto and AI-related enterprises.
The absence of the CLARITY Act means that capital will continue to flow, albeit without the necessary U.S. legal protections, institutional frameworks, or clarity from the SEC and CFTC. Earlier this month, White House adviser Patrick Witt indicated that the final obstacles for the legislation were being addressed, but the available legislative timeline is increasingly short.
