According to Senator Cynthia Lummis, the bipartisan talks around the two remaining issues with the CLARITY Act have ended without an an agreement. Lummis stated that the bill has bipartisan support for 99% of its contents, but hopes that the remaining 1% will be resolved after the bill is passed. The highly anticipated CLARITY Act will be voted for on Thursday, May 14, 2026, aiming to bring much needed regulatory clarity to the cryptocurrency market.

What’s Holding The Pro-Cryptocurrency CLARITY Act?

Although several factions have supported the CLARITY Act, many have raised concerns. Firstly, Wall Street banks are displeased with stablecoin yields. Banking groups have called for new language to prohibit cryptocurrency stablecoin yields. Banks worry that the yields from stablecoins will move people away from traditional savings accounts.

Another point of contest was about how DeFi platforms should be regulated. Senators are not sure which platforms fall under truly decentralized protocols and which have identifiable operators or control mechanisms. In fact, Senator Lummis mentioned the FTX collapse of 2022. She stated, “when or if another FTX happens, we will have no one to blame but ourselves.”

Also Read: Clarity Act Explained: Is It A Good Time To Invest In Crypto?

Thirdly, several senators had called for new language on ethics, especially because of President Trump’s family’s cryptocurrency empire.

Will The Market Rally?

There is a possibility that the cryptocurrency market will see increased investor confidence if the CLARITY Act is passed. The legislation will bring more regulatory oversight and higher investor protection. The clear rule book could lead to more people entering the cryptocurrency space. Such a development could lead to a price rally for major assets.

Moreover, the Federal Reserve will welcome its new chair Kevin Warsh later this week. Warsh is expected to reduce rates as soon as he assumes office. A rate cut could further propel the cryptocurrency market.