US Crypto Regulation Bill Hits Final Stretch Amid Partisan Hurdles

The US government is on the cusp of finalizing a sweeping crypto market structure bill, known as the CLARITY Act (H.R. 3633), which would represent the most significant overhaul of digital asset regulation in US history.

Staff from both Republican and Democratic sides have been meeting in policy discussions to iron out disagreements on key provisions, including ethics, oversight of decentralized finance, stablecoin yield mechanisms, and regulatory authority between the SEC and CFTC.

The CLARITY Act builds on the foundation laid by the GENIUS Act, which focused specifically on payment stablecoins. The bill's legislative journey began in July 2025 when the House passed its version with a bipartisan vote of 294-134.

However, progress has been slow due to partisan divisions and opposition from the banking industry, which views yield-bearing stablecoins as direct competition to traditional deposit products.