The CLARITY Act's passage depends on a ban of passive stablecoin yield

The CLARITY Act will likely be killed for 2026 if it is delayed into the summer. The bill's passage depends on a legislative compromise regarding stablecoin yield. Banks oppose interest-like rewards on stablecoins, and this single conflict has blocked the bill since January. Senator Thom Tillis is drafting a compromise proposal that bans passive yield while allowing rewards tied to activity. If the Senate Banking Committee accepts this compromise, it can schedule a vote, likely in the last week of April. The bill's purpose is to split crypto oversight between the SEC and the CFTC, removing the legal grey zone that has driven enforcement-first regulation. If the bill does not reach the Senate floor by May, it risks being pushed out as the focus shifts to midterm elections. The bill will likely be killed for 2026 if it is delayed into the summer.