The CLARITY Act's July 4, 2026 passage deadline is now official. Patrick Witt, executive director of the President's Council of Advisors for Digital Assets, set the target to align with America's 250th anniversary. Congress faces a compressed timeline to move the bill through key votes this spring or miss the symbolic date.
Banking Groups Draw Line on Stablecoin Yields
Banking trade groups including the Bank Policy Institute, American Bankers Association, and Independent Community Bankers of America criticized the draft legislation's failure to ban interest payments on stablecoins. They want clearer restrictions on these products. The groups argue current language leaves financial risks unaddressed.
Gillibrand Blocks Advance Without Ethics Rules
Senator Kirsten Gillibrand declared the CLARITY Act cannot move forward without new ethics provisions. These would ban U.S. officials, including the President, from holding crypto industry ties. The requirement adds another hurdle to the tight schedule.
Witt's 'Equally Unhappy' Compromise
Patrick Witt acknowledged stakeholders dislike the draft. He called it a balanced compromise that leaves both sides dissatisfied. "It makes crypto unhappy, banks unhappy, but equally unhappy" about stablecoin yield rules, Witt stated. The timing isn't great for Congress, but the July 4 deadline is non-negotiable.
Month-by-Month Congressional Clock
The bill must clear Banking Committee markup this month. Then it needs four Senate working weeks in June followed by a House vote before July 4. Witt said the committee step is the immediate priority. The banking groups' objections could delay that vote if unresolved.
Banking Committee markup must start this week to keep the July 4 target alive. If it slips into June, the White House's deadline becomes impossible.
