Key Takeaways:

Over 30 crypto industry participants urged SEC to formalize DeFi guidance. Regulatory ambiguity around SEC broker rules threatens blockchain innovation. Commissioner Hester Peirce backed rulemaking to align SEC policy with DeFi.

Crypto Industry Participants Press SEC to Formalize DeFi Guidance

The crypto industry is urging the U.S. Securities and Exchange Commission (SEC) to turn recent guidance on decentralized tools into formal rules, a move supporters see as positive for long-term blockchain development. On April 21, DeFi Education Fund and over 30 organizations submitted a letter backing the agency’s position on certain crypto transaction interfaces while pressing for a formal regulatory framework that would provide lasting clarity.

The coalition supported the regulator’s distinction on non-custodial tools, arguing that these interfaces serve as technical infrastructure rather than transaction intermediaries. DeFi Education Fund, a U.S.-based advocacy group, organized the response, while the other firms and organizations signed on as independent supporters. The position also aligns with Commissioner Hester Peirce’s broader push for modernized broker definitions that reflect crypto market structure. The letter stated:

“We therefore respectfully urge the Commission to build upon the Statement through notice-and-comment rulemaking.”

“Specifically, the Commission should consider adopting a principles-based framework that provides clear, objective criteria for when activity falls within the definition of ‘broker,’ iterating on the criteria in the Statement,” the letter added.

Commissioner Peirce reinforced this direction in separate remarks, calling for a permanent overhaul of broker-dealer rules to better align with decentralized technologies. She emphasized that legacy definitions risk misclassifying software providers and infrastructure participants, signaling the need for a durable framework that reflects current crypto market realities. Her position adds weight to the industry’s argument that formal rulemaking, rather than guidance, is essential for long-term regulatory clarity.

Formal Broker Framework Seen as Key to DeFi Expansion

Rulemaking is central to the group’s argument because Staff guidance does not carry the same durability as a formal rule. The letter pointed to continuing debate over how the term “broker” should apply in decentralized markets and argued that infrastructure providers, including validators, data services, and communications networks, should be distinguished from entities that actively intermediate transactions. The signatories warned that regulatory ambiguity could chill blockchain development and reduce efficient market access for investors.

The letter closed with a forward-looking appeal for a more stable, technology-neutral approach. The coalition wrote:

“We are hopeful that formalizing the principles in the Statement into a durable, technology-neutral regulatory framework would provide lasting clarity and reinforce the approach outlined by the Staff, and we look forward to providing additional, detailed commentary in the future.”

In the group’s view, codifying the SEC’s position would reduce uncertainty, limit future reinterpretation, and provide a stronger foundation for decentralized finance development.

Key Takeaways:

Brad Garlinghouse linked changing SEC policy to improving sentiment in U.S. crypto markets. Paul Atkins pointed to clearer rules, lighter compliance burdens, and support for blockchain finance. Ripple’s CEO said a more predictable regulatory framework could strengthen innovation and long-term growth.

Crypto Sentiment Improves as SEC Shifts Direction

Ripple CEO Brad Garlinghouse linked a broader regulatory shift to improving sentiment in U.S. crypto markets on April 20. His remarks came as Securities and Exchange Commission (SEC) Chair Paul Atkins has publicly framed the agency’s recent direction around clarity, capital formation, and support for blockchain-based finance, rather than a heavier enforcement posture.

Referencing former SEC Chair Gary Gensler’s regulation-by-enforcement approach, Garlinghouse stated on social media platform X:

“By comparison, Paul Atkins is a breath of fresh air and sanity. He is a model of what leadership at the SEC should look like… he’s focusing on what matters – protecting investors and fostering innovations that help those investors and the markets.”

That view aligns with Atkins’ recent message. Last week, the SEC chairman criticized the agency’s past reliance on enforcement in crypto, saying the market faced years without workable compliance pathways. Atkins has also said digital assets are “really top on our list,” while presenting crypto policy as a major SEC priority in 2026.

Atkins Pushes Clearer Rules for Digital Assets

Supporting that shift, Atkins has outlined a more formal regulatory framework for digital assets and tokenized markets. On April 21, he described a push for clearer oversight, lighter compliance burdens, and closer coordination with the Commodity Futures Trading Commission (CFTC). He also said the SEC was nearing an “innovation exemption” designed to let market participants facilitate trading of tokenized securities on-chain within a limited compliant structure while longer-term rules are developed. Those measures reflect a broader effort to align regulation with evolving market infrastructure while maintaining investor safeguards.

That evolving stance follows a landmark legal outcome that shaped crypto oversight. The Ripple vs. SEC case established a distinction between institutional XRP sales and public market trading. Filed in December 2020 and concluded in August 2025, the court ruled that programmatic XRP sales on exchanges were not securities transactions, while direct institutional sales violated securities laws. Ripple faced a $125 million penalty, later reduced to $50 million, well below the $2 billion initially sought, with both sides withdrawing appeals to formally end the case.

In his statement on April 20, Garlinghouse sharpened his criticism of the prior approach, stating:

“The SEC’s first mission is to protect investors. Under Gary Gensler, the SEC clearly lost its way. He declared war on a technology. It was an unlawful power grab… and the courts said as much.”

The remarks reflect ongoing industry criticism of the SEC’s earlier enforcement-driven strategy, while underscoring expectations that a clearer framework could reshape compliance and support broader digital asset adoption.

Key Takeaways:

SEC emphasized regulatory clarity as key to stronger U.S. capital markets. Paul Atkins framed his first year as historic, with a focus on innovation and growth. NYSE event reinforced policy shift supporting crypto and market competitiveness.

‘It’s Been a Historic First Year as SEC Chairman’

A first anniversary appearance at the New York Stock Exchange (NYSE) highlighted the market impact of U.S. Securities and Exchange Commission (SEC) Chair Paul Atkins’ policy shift. On April 20, the SEC, Atkins, alongside supportive lawmakers and fellow regulators, cast the milestone as reflecting a year shaped by regulatory clarity, stronger U.S. capital markets, and support for innovation, including crypto.

The SEC detailed that Atkins rang the NYSE opening bell to mark his one-year anniversary as chairman. The agency emphasized a shift toward regulatory clarity and a less enforcement-driven approach to crypto and other emerging technologies, while Atkins described the period as a “historic first year” focused on returning the SEC to its core mission of investor protection, orderly markets, and capital formation.

Commodity Futures Trading Commission (CFTC) Chair Mike Selig stated that the SEC had “ended regulation by enforcement” and supported “innovative technologies like crypto,” while pointing to closer coordination between the CFTC and SEC. That signals clearer operating conditions for digital asset firms in the U.S., as policymakers continue emphasizing innovation, competitiveness, and regulatory alignment.

Atkins was sworn in as the SEC’s 34th chairman on April 21, 2025, after President Donald Trump nominated him on Jan. 20, 2025, and the Senate confirmed him on April 9. The role marks Atkins’ return to the agency, where he previously served as an SEC commissioner from 2002 to 2008. During his current tenure, the SEC has signaled a more industry-friendly approach to digital assets through moves including support for its Crypto Task Force, the dismissal of civil enforcement actions against several crypto firms, and a broader push for clearer crypto guidance.

Atkins Ties Crypto to SEC Core Mission

The SEC chairman further stressed: “I promised a new day at the SEC when I came aboard … We’ve made huge progress,” he said, reiterating:

“When I took office 1 year ago, I promised a new day at the SEC. And we’ve delivered.”

“With our agenda to restore regulatory clarity, strengthen competitiveness, and accelerate innovation, we are making sure the U.S. remains the world’s strongest and safest place to invest,” he stated. Those remarks placed crypto within a broader market strategy while linking policy direction to competitiveness and investor safeguards.

Echoing that stance, House Financial Services Committee Republicans said on X that the SEC advanced policy changes aligned with innovation, stronger U.S. capital markets, and investor protection, adding that “Republican members look forward to continue advancing these efforts.”

Key Takeaways:

Atkins confirmed SEC will prioritize digital asset regulation policy. Peirce highlighted the lack of a spot crypto framework. Uyeda emphasized SEC reforms may boost capital access and markets.

Inaugural Podcast Outlines SEC Crypto Priorities and Policy Direction

U.S. Securities and Exchange Commission (SEC) leadership is cementing and clarifying its digital asset policy framework as crypto regulation moves deeper into the agency’s 2026 agenda. On April 16, SEC Chairman Paul Atkins joined Commissioners Mark Uyeda and Hester Peirce in the inaugural Material Matters podcast episode titled “Commissioners Set the Course: 2026 Priorities.” The discussion outlined how the agency is defining regulatory direction on crypto and broader market structure.

Atkins announced the launch of the Material Matters podcast on social media platform X, describing it as a new SEC initiative designed to give the public greater insight into the agency’s work and its broader economic impact. In the episode, he emphasized crypto as a top priority, stating:

“In one area now that is really top on our list to try to get right with respect to regulation is the whole digital asset area, crypto assets.”

The SEC chairman linked the effort to broader national ambitions, noting that President Donald Trump has repeatedly promoted the goal of making the United States a global crypto hub. “The President has often said that he wants to make America the crypto capital of the world. And so, we’ve been working hard about that,” he emphasized.

Commissioner Uyeda also outlined broader regulatory priorities, emphasizing a return to the agency’s core mission of investor protection, fair, orderly, and efficient markets, and capital formation. He indicated that recent years marked a departure from traditional SEC principles, with greater focus on matters outside the agency’s longstanding disclosure-based approach. Uyeda suggested that restoring that balance is important to support public markets, improve access to capital, and keep rulemaking aligned with the SEC’s central mandate.

Peirce Highlights Market Structure Gaps and Innovation Strategy

Commissioner Peirce highlighted a key regulatory gap in the current market structure, stating: “Right now, there hasn’t been a regulatory framework around the spot trading of crypto assets. And that’s something that CFTC will be working on.” Her remarks indicate that regulators are focused on defining jurisdictional boundaries, including coordination with the Commodity Futures Trading Commission (CFTC), and implementing workable oversight. The discussion also referenced blockchain efficiencies such as peer-to-peer transfers and programmable execution, reinforcing the need for coordinated regulatory approaches as adoption expands.

Peirce concluded by stressing the importance of maintaining U.S. competitiveness in financial innovation. She stated:

“We do want to make this the place where people want to innovate whether it’s in crypto or something else.”

The statement reflects a broader objective to balance investor protection with innovation. The episode signals that the SEC is working to solidify a durable framework that supports market development while addressing fraud and systemic risks.

Key Takeaways:

FATF increased pressure on jurisdictions to enforce crypto standards faster. Stablecoins face sharper scrutiny as illicit finance risks grow. Jurisdictions could face tougher accountability if gaps persist.

FATF Tightens Global Crypto Compliance Push

Crypto oversight climbed the global policy agenda after Financial Action Task Force (FATF) ministers increased pressure on countries to close gaps in digital asset regulation. In a declaration issued on April 17, the intergovernmental standard setter linked stronger anti-money laundering enforcement to faster action on virtual assets. The message was clear: jurisdictions that lag on crypto rules will face greater scrutiny.

The declaration framed crypto within a broader push to modernize defenses against illicit finance. Ministers stated in the declaration:

“We support responsible innovation in finance.”

That language is notable because FATF did not portray blockchain-based finance as inherently risky. Instead, it said technology, including artificial intelligence, can strengthen supervision and compliance when backed by safeguards. The same section also supported work on emerging payment technologies and related risks, while urging quicker implementation of crypto standards across the FATF network.

Recommendation 15, titled “New Technologies,” remains FATF’s main global standard for virtual assets (VA) and virtual asset service providers (VASPs). The group revised the recommendation in 2018 and adopted its interpretive note in June 2019 to clarify how anti-money laundering and counter-terrorist financing rules apply to crypto activity. The framework requires countries to assess virtual asset risks, apply a risk-based approach, and ensure VASPs are licensed or registered. It also requires supervision by competent authorities, sanctions for non-compliance, customer due diligence, recordkeeping, suspicious transaction reporting, and international cooperation. The June 2019 interpretive note and related guidance also form the basis for the Travel Rule, which requires originator and beneficiary information to accompany covered transfers.

Stablecoins and Offshore Firms Face Greater Scrutiny

Stablecoins and offshore firms are drawing sharper attention as implementation gaps persist. FATF’s 2025 targeted update states Recommendation 15 remains the benchmark for global crypto compliance reviews and found that only 29% of 138 assessed jurisdictions were largely compliant with virtual asset requirements, while one jurisdiction was fully compliant. A March 3, 2026, report examines stablecoin misuse in peer-to-peer transfers through unhosted wallets and cites Chainalysis data showing stablecoins made up 84% of illicit virtual asset transaction volume in 2025. A March 11, 2026, report on offshore VASPs outlines methods for detecting, registering, supervising, and sanctioning firms that exploit weaker oversight.

Crypto drew its clearest warning in the ministerial text itself. Ministers stated in the declaration:

“Considering the inherently cross-border nature of virtual assets, we call for the rapid and effective implementation of the FATF Standards in the virtual assets sector across the global network, and through our peer-review process, will hold countries who fail to expeditiously implement the Standards to account.”

The broader takeaway is that FATF is not introducing a new crypto rulebook. It is pressing countries to enforce the existing one faster, more consistently, and with fewer cross-border loopholes.

Key Takeaways:

CFTC Chairman Michael Selig confirmed the agency is deploying AI and automation tools to surveil markets with a 20%-reduced staff since FY2024. Six Polymarket accounts reportedly earned $1.2 million betting on U.S. Iran strikes hours before the February 28th action, raising insider trading alarms. Selig called bipartisan crypto market structure legislation under the Clarity Act essential, urging Congress to send the bill to the president’s desk in 2025.

Selig Calls Clarity Act Essential as CFTC Faces Congressional Heat Over Polymarket Insider Trading Fears

Chairman Michael Selig, sworn in roughly 100 days before the hearing, testified that the Commodity Futures Trading Commission (CFTC) has authorized the use of Microsoft 365 Copilot across its workforce and is building new AI-driven surveillance systems to flag fraud, market manipulation, and insider trading. The agency’s headcount has dropped from 708 full-time employees at the end of fiscal year 2024 to approximately 543, a reduction of more than 20%. Selig defended the cuts, telling the panel the agency is running more efficiently than ever.

Ranking Member Angie Craig of Minnesota pushed back directly. Craig argued the CFTC cannot adequately oversee digital commodity trading and prediction markets with staffing levels below what the first Trump administration had itself requested. She called for the agency to be fully funded and said Congress never intended for a single commissioner to run the CFTC alone. Selig is currently the only sitting commissioner, with four seats vacant.

Multiple members questioned Selig about a pattern of well-timed trades on Polymarket, Kalshi, and other platforms tied to sensitive government actions. Rep. Jim McGovern of Massachusetts cited roughly $500 million in oil and equities futures placed just before President Trump posted on Truth Social at 7:04 a.m. on March 23rd that the U.S. had begun ceasefire talks with Iran. Rep. April McClain Delaney and others referenced a Reuters report that six newly created Polymarket accounts earned approximately $1.2 million betting that U.S. airstrikes on Iran would occur, with those accounts funded within 24 hours of the strikes.

Selig repeated a zero tolerance policy on insider trading throughout the hearing but declined to confirm or deny whether the CFTC is investigating any specific trades, saying doing so could compromise active investigations. He said the agency’s enforcement division, led by David Miller, a former CIA officer and Southern District of New York prosecutor, is actively staffing up.

On digital assets, Selig expressed strong support for the CLARITY Act, bipartisan crypto market structure legislation this committee has advanced. He told members the bill is essential to end years of regulatory ambiguity that has pushed builders and innovators offshore. He said the CFTC and U.S. Securities and Exchange Commission (SEC) have already signed a joint interpretation clarifying which crypto assets qualify as securities and which as commodities. The agencies also entered a memorandum of understanding to coordinate surveillance, information sharing, and rulemaking.

Selig addressed prediction markets at length. The agency issued an advance notice of proposed rulemaking in March 2025 soliciting public comment on how to regulate event contracts, which are derivatives traded on registered exchanges. He told the committee the CFTC has not allowed contracts tied to war, terrorism, or assassination on its regulated platforms, but declined to prejudge the outcome of the rulemaking process. Several Democrats, including Rep. Jim Costa of California and Rep. Teresa Leger Fernandez of New Mexico, argued that prediction market sports contracts directly undermine tribal gaming compacts and state sovereignty.

Rep. Austin Scott of Georgia raised concerns about decentralized exchange ( DEX) platforms such as Hyperliquid, which lists perpetual contracts on crude oil without segregated funds, market surveillance, or U.S. oversight. Scott said volumes on those platforms may reach 200,000 orders per second and could be affecting domestic gasoline prices. Selig said the CFTC is monitoring those offshore markets and wants to bring that activity back under domestic regulation.

Selig told the committee the agency has also taken steps to clarify the capital treatment of payment stablecoins, issued guidance on tokenized collateral, and outlined obligations for U.S.-based software developers building on blockchain infrastructure. He called legislation the only way to lock in those protections long-term against future administrative reversals.

The hearing also covered rising fertilizer prices, concerns about 24-hour trading models for agricultural commodity contracts, the CFTC whistleblower fund’s funding stability, and a push by multiple members to codify existing no-action letters that protect church pension plans and university endowments from commodity pool operator registration requirements.

Committee Chairman GT Thompson of Pennsylvania closed by saying he and Craig will send a letter to the White House urging the prompt nomination of qualified individuals to fill all four vacant commissioner seats on a bipartisan basis. The hearing record will remain open for 10 days.

Key Takeaways:

The FCA opened consultation CP26/13 on April 15, 2026, giving firms until June 3 to respond on crypto perimeter rules. Exchanges, custodians, and stablecoin issuers must secure FSMA Part 4A authorization before the October 25, 2027 deadline. The FCA authorization gateway opens September 30, 2026, giving firms 18 months to complete applications before the regime starts.

FCA Seeks Industry Feedback on Crypto Rules Before 2027 Deadline

The consultation focuses on clarifying which activities involving qualifying cryptoassets and qualifying stablecoins will require formal FCA authorization. The FCA says the guidance is designed to reduce uncertainty for firms currently operating under Money Laundering Regulations as they prepare for the shift to full FSMA authorization.

The agency framed the goal as building “an open, sustainable and competitive crypto market that people can trust.” Firms have until June 3, 2026, to submit responses. The FCA expects to publish final guidance in September 2026.

Under the forthcoming framework, seven new regulated activities will be introduced through the Financial Services and Markets Act 2000 ( Crypto assets) Regulations 2026. Any firm carrying on these activities “by way of business” in the UK will need a Part 4A FSMA authorization.

The regulated activities include issuing qualifying stablecoins in the UK, safeguarding or arranging the safeguarding of qualifying crypto assets, operating a qualifying crypto asset trading platform, dealing in qualifying crypto assets as principal or agent, arranging deals in qualifying crypto assets, and arranging qualifying crypto asset staking.

The paper draws a hard line on decentralization. The FCA states that decentralized features do not automatically exclude a firm from regulation. The guidance emphasizes substance over form and includes decision trees and scenario-based examples to help firms determine whether their activities fall within the regulatory perimeter.

The FCA also defines key terms firms must understand. A qualifying cryptoasset is described as a fungible, transferable cryptographic asset that excludes electronic money, fiat currencies, central bank digital currencies, and limited-network assets. A qualifying stablecoin is a qualifying cryptoasset that seeks to maintain a stable value relative to fiat currency through backing assets.

Overseas firms serving UK users are also covered. The FCA says a firm’s activities can be “carried on in the UK” even when the firm is based abroad, unless those services are routed through an authorised UK intermediary. The guidance addresses overseas branches versus subsidiaries directly through scenario-based questions.

The FCA’s authorization gateway opens Sept. 30, 2026, and closes Feb. 28, 2027. Firms that apply before the gateway closes can continue operating under savings provisions while their applications are processed, even after the Oct. 25, 2027, commencement date.

MLR-registered firms are not off the hook. The FCA notes that authorized firms will still need to comply with MLR obligations in many cases. Transition provisions allow MLR-registered firms to keep operating until their FSMA applications are resolved.

CP26/13 is structured in a Q&A format and will be added as a new chapter in the FCA’s Perimeter Guidance Manual. The paper poses six high-level questions asking whether respondents agree with the proposed guidance across sections covering regulated activities, exclusions, MLR interaction, and amendments to PERG 1, 2, and 8.

The FCA says the cost impact of the consultation itself is minimal, as it is guidance only. Final rules covering prudential standards, conduct requirements, and market abuse are expected this summer, with all policy statements published before the Oct. 2027 go-live date.

Firms seeking additional support before applying can contact the FCA through its pre-application support service. The agency is also holding webinars to walk firms through the changes ahead of the gateway opening.

Key Takeaways:

Pakistan enabled licensed crypto firms to access banking, reversing its earlier blanket restriction. Banks must apply strict due diligence and FMU reporting when onboarding licensed firms. Pakistan lifted its 2018 ban that blocked banks from processing, trading, or holding crypto assets.

SBP Circular Reverses 2018 Restriction, Opens Banking Access to VASPs

Pakistan’s latest regulatory update is changing how digital asset companies connect with the formal financial system, pointing to a more structured model of oversight and controlled participation. On April 14, the State Bank of Pakistan (SBP) issued BPRD Circular Letter No. 10 of 2026, permitting SBP-regulated entities to open accounts for licensed virtual asset service providers (VASPs) under defined compliance conditions.

The circular builds on recent legislative developments that provide the legal basis for this shift. It explicitly recognizes the regulatory foundation, stating:

“The Virtual Assets Act, 2026 has been enacted, pursuant to which, Pakistan Virtual Asset Regulatory Authority (PVARA) has been established as the statutory authority responsible for the licensing, regulation, supervision and oversight of virtual asset activities in Pakistan.”

With that framework in place, the directive effectively replaces the earlier restriction and allows regulated institutions to work with licensed entities, noting: “subject to strict compliance with the conditions outlined herein, SBP Regulated Entities (REs) may open bank accounts of entities duly licensed by PVARA as Virtual Asset Service Providers (VASPs).”

The policy shift marks a clear reversal from SBP BPRD Circular No. 03 of 2018, issued on April 6, 2018. In that earlier directive, the central bank stated: “Virtual currencies (VCs) like bitcoin, litecoin, pakcoin, onecoin, dascoin, pay diamond etc. or initial coin offerings ( ICO) tokens are not legal tender, issued or guaranteed by the government of Pakistan.” It also said regulated institutions “are advised to refrain from processing, using, trading, holding, transferring value, promoting and investing in virtual currencies/tokens.” The 2018 circular covered banks, development finance institutions, microfinance banks, payment system operators, and payment service providers. The central bank emphasized at the time: “Any transaction in this regard shall immediately be reported to Financial Monitoring Unit (FMU) as a suspicious transaction.”

SBP Maintains Strict Controls on VASP Banking Access

The new framework introduces detailed operational and compliance requirements for financial institutions. Banks must verify VASP licenses directly with PVARA before onboarding and establish segregated client money accounts to process authorized transactions. These accounts must be nonremunerative, denominated in Pakistani rupees, and restricted from cash transactions or use as collateral.

Alongside these safeguards, regulated entities are required to enhance due diligence measures by evaluating each VASP’s business model, customer onboarding processes, and geographic exposure. Risk profiling systems must also be updated to reflect digital asset related risks, while ongoing monitoring and suspicious transaction reporting to the Financial Monitoring Unit remain mandatory under existing laws.

The directive also outlines a transitional pathway for firms seeking full authorization. Entities holding a no-objection certificate from PVARA may access limited-purpose accounts to complete licensing requirements, though broader services remain restricted until formal approval. The circular reiterated:

“REs shall not invest, trade or hold virtual assets using their own funds or customer deposits.”

This restriction underscores the SBP’s cautious stance, balancing access with risk containment while maintaining full compliance responsibility across all applicable regulatory frameworks.

Key Takeaways:

Garlinghouse said the industry is closer than ever to securing U.S. crypto clarity. Garlinghouse suggested Washington may be nearing a compromise as frustration builds. SEC and CFTC alignment adds pressure on Congress to turn two-agency signals into law.

Regulatory Certainty Remains Central to US Digital Asset Market

Regulatory certainty remains one of the most important variables for the U.S. digital asset market as companies press Washington to turn shifting agency signals into durable law. Ripple Chief Executive Brad Garlinghouse renewed that message on April 14 while marking 11 years at the company. His comments tied personal tenure, policy outreach, and legislative timing to the sector’s broader push for stable crypto rules.

Garlinghouse stated on social media platform X: “Yesterday, I celebrated 11 years at Ripple. Back then, I couldn’t have predicted that we’d still be fighting for regulatory clarity.” He framed the issue as a long-running policy battle rather than a short-term dispute. The executive also pointed to recent meetings in Washington with Sen. Bill Hagerty, Sen. Bernie Moreno, Sen. Tim Scott, Sen. John Boozman, and Patrick Witt, alongside an appearance at the Semafor World Economic Summit. He added:

“The fight has been worth it … I know we are closer than ever.”

That wording suggested growing confidence that crypto legislation is moving from discussion toward a more actionable phase.

The Digital Asset Market Clarity Act, often called the CLARITY Act, is still under consideration by the U.S. Senate following earlier House approval. The bill passed the House of Representatives in July 2025 and has since moved into negotiations in the Senate Banking Committee. Lawmakers returned on April 13 after the Easter recess, opening what observers describe as a narrow window for progress. The committee, chaired by Senator Tim Scott, is targeting a markup in the final two weeks of April. Senator Bernie Moreno has indicated that failure to advance the bill before May could delay consideration until after the 2026 midterm election cycle. Recent discussions have focused on stablecoin yield provisions, where an agreement in principle would restrict passive yield while allowing activity-based rewards. Coinbase Chief Executive Brian Armstrong publicly backed the legislation recently, removing a key industry obstacle.

Latest Remarks Align With Broader Push for Clear Crypto Rules

The latest developments also align with Garlinghouse’s broader argument that agency coordination, while important, does not fully remove policy risk for digital asset firms. At a recent Semafor World Economic Summit, he pointed to alignment between the U.S. Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) as a meaningful shift for the sector.

Even so, the Ripple chief has warned that regulatory posture can change with new leadership unless Congress codifies clear standards. That view reflects a central concern across crypto markets: without legislative permanence, firms still face uncertainty around oversight, market structure, and enforcement direction. Garlinghouse also linked the debate to politics, arguing that hostility toward crypto may carry limited electoral upside as the industry’s voter base and economic footprint expand. Garlinghouse emphasized on X:

“The CLARITY Act window is open. And now is our moment to act.”

That appeal sharpened the legislative focus of his message and underscored the urgency behind current lobbying efforts. He also reiterated a point from his public remarks about compromise: “When people are at their peak frustration, that’s when they finally compromise, and it gets done. I think we’re there.” Together, those statements present a measured but still constructive view that momentum is building, even if a final U.S. crypto framework has not yet been secured.

Key Takeaways:

Sen. Thom Tillis plans to release revised CLARITY Act draft language this week, targeting a Senate Banking Committee markup in late April 2026. The proposed Tillis-Alsobrooks framework bans passive stablecoin yield but permits activity-based rewards, splitting a dispute between banks and Coinbase. Prediction markets give the CLARITY Act a 59% chance of passage in 2026, down from 82% earlier this year, as unresolved DeFi and ethics provisions remain.

Tillis Targets Late April Markup for CLARITY Act After Stablecoin Yield Deal in Principle

According to a report from Politico Pro, the North Carolina Republican has been working alongside Sen. Angela Alsobrooks (D-Md.) to finalize language for the Digital Asset Market Clarity Act, a bipartisan bill seeking a broad regulatory framework for the crypto sector. The stablecoin yield dispute has stalled the bill in the Senate Banking Committee since January 2026.

Stablecoins are dollar-pegged digital assets such as USDT and USDC used across trading platforms, payment networks, and as a cash equivalent in crypto markets. That market currently sits at roughly $321 billion.

The fight centers on whether third-party platforms, including exchanges and wallet providers like Coinbase, can offer rewards or yield on users’ idle stablecoin balances. The GENIUS Act, passed in 2025, already bars stablecoin issuers themselves from paying yield directly.

Banking groups argue that allowing any yield on stablecoins would pull money out of traditional savings accounts, creating deposit flight and what they describe as structural disruption to the financial system. Their position is that crypto platforms would effectively be offering bank-style interest products without equivalent regulatory oversight.

Crypto firms counter that restricting rewards stifles competition and limits platform growth. Coinbase, one of the most vocal critics of earlier drafts, withdrew its support for the CLARITY Act over strict yield restrictions and has pushed for rules that leave room for activity-tied incentives.

Tillis and Alsobrooks, with White House involvement, reached an agreement in principle in March 2026. A private draft circulated to industry representatives in early April generally bans passive yield, meaning interest paid simply for holding a stablecoin balance, while permitting activity-based rewards tied to transactions, payments, or platform engagement.

The draft also calls on the SEC, CFTC, and Treasury to jointly define permissible reward structures and issue anti-evasion rules within 12 months of enactment. Exact definitions for qualifying activity remain under discussion.

Tillis told Politico:

“I think the language has come together well. If things proceed the way they are now, we’ll probably release the text publicly later this week.”

He indicated he remains open to further changes. Neither side is fully on board. Crypto groups, including Coinbase, have raised concerns about caps on balances and transaction volumes in earlier versions. Banking groups are now privately pushing back on the latest draft, though specific objections have not been made public.

The Senate returned from Easter recess on April 13. Senate Banking Committee Chairman Tim Scott (R-S.C.) is targeting a markup session for late April, though no date has been formally set.

Other unresolved issues include DeFi provisions, ethics rules that would bar government officials from personally profiting from crypto, and potential additions tied to community bank deregulation.

If the bill does not reach the Senate floor by May, it risks being pushed past the 2026 midterm elections. Prediction markets on Polymarket currently give the CLARITY Act a 59% chance of being signed into law this year, down from more than 82% earlier in 2026.

A deal on stablecoin yield would clear a significant obstacle toward passing the first major U.S. crypto market structure law, a goal both the industry and the White House have backed for more than a year.