Galaxy Research sounds the alarm on the remaining challenges of the Crypto Bill
The tentative settlement of stablecoin rewards has renewed hope for the CLARITY Act, a key piece of cryptocurrency legislation.
Summary
- Galaxy Research warns that the crypto bill still faces serious regulatory hurdles ahead.
- Despite the recent stablecoin agreement, key issues such as DeFi regulation remain unresolved.
- The crypto industry is facing uncertainty as the legislative clock runs out on the bill.
The agreement, which resolves a major conflict between traditional banks and the digital assets industry, gave a boost to the pending legislation. However, experts warn that the UNCONSCIOUS Act still faces major challenges and must overcome a series of unresolved issues before it can be passed.
In March 2026, key lawmakers, including Senators Thom Tillis (RN.C.) and Angela Alsobrooks (D-Md.), reached a “tentative agreement” with White House officials on the issue of stablecoin rewards. The deal aims to address concerns expressed by traditional Wall Street institutions about stablecoin rewards offered by exchanges. These rewards, critics say, could lead to a mass migration of deposits from traditional banks to crypto exchanges.
The agreement between Senator Tillis and Alsobrooks was seen as a major step forward in the push to resolve this issue, as it has been one of the key obstacles holding back the passage of the CLARITY Act since January. The White House, through crypto policy adviser Patrick Witt, praised the bipartisan efforts, calling the agreement a “milestone” in passing the law.
While the stablecoin rewards agreement is an important development, the CLARITY Act still faces other hurdles. Alex Thorn, head of research at Galaxy Digital, warned that while the stablecoin controversy is the most focused, it is not the only challenge. Thorn pointed out several other controversial topics that need to be resolved, including decentralized finance (DeFi) regulation, developer protections, and the power of the Securities and Exchange Commission (SEC).
Thorn emphasized that the window to pass the CLARITY Act this year is closing quickly. He said if the bill does not pass the Senate Banking Committee by the end of April, the chances of it passing in 2026 will be very low. With limited time left for discussion, Thorn and other experts warn that time is ticking for the CLARITY Act to move forward.
The way forward for the CLARITY Act
The CLARITY Act, which aims to establish comprehensive regulatory frameworks for cryptocurrency, is seen as critical to the industry’s long-term growth. However, with the issue of stablecoin rewards now being discussed, lawmakers and the White House must turn their attention to the remaining hurdles that could prevent this bill from reaching the Senate floor. The legislation needs to pass the Senate in early May to have a realistic chance of becoming law in 2026.
