CLARITY Act nears US crypto market rules showdown, reshoring could hinge on stablecoin yield

The proposed CLARITY Act aims to set clearer US crypto market rules on when digital assets are treated as securities or commodities. Consensys attorney Bill Hughes argues the guidance could help “reshore” trading activity to US-based venues, because the US dollar remains the largest fiat on-ramp, with over $2.4T in crypto-related volume between July 2024 and June 2025—while a large share of trading still occurs offshore. Hughes points to venue concentration to support the case. Binance handled more than 38% of centralized exchange volume in Dec 2025, while Coinbase was the only US exchange in CoinGecko’s top 10 list for 2025. Supporters say clearer compliance standards would make it easier for firms to build, list assets, and serve users within the US. Next steps add near-term headline risk. The Senate Banking Committee is expected to review the bill on May 14, with a narrow window before the August recess. Hughes warned that if Congress misses the window, broad market-structure legislation may not return until 2030. Banking groups are reportedly pushing back on Section 404, which covers stablecoin-holding rewards, arguing it could be treated like deposit interest. Senators Cynthia Lummis says revised wording reflects a compromise on yield, while Thom Tillis cautions traditional finance may oppose parts of the bill. Expectations are mixed. A HarrisX poll found 52% of registered voters support the CLARITY Act. Prediction markets place odds above 60%, while Galaxy’s Alex Thorn estimates a near 50-50 outcome. For traders, the CLARITY Act could act as a catalyst, but short-term price effects will likely depend on committee progress and the final regulatory interpretation.