Crypto News
Franklin Templeton's head of digital assets Chris Perkins said the $2.7 trillion crypto market will be "just fine" if the Clarity Act fails to pass, arguing institutional rails have already been built without federal market-structure legislation. The Clarity Act cleared the House in July 2025 on a 294–134 bipartisan vote, but the Senate has since stalled on three unresolved issues: stablecoin yield language, DeFi provisions, and securing the full Republican committee bloc needed to advance.
Senate Banking Committee Chairman Tim Scott flagged those pressure points on April 14, calling each resolvable within two weeks — a deadline that has already slipped. Senator Thom Tillis requested additional review time on stablecoin yield structures in late April, pushing the committee markup into May in what is now the third timeline revision. Despite that, reporting on May 2 suggested the stablecoin yield disputes are now resolved and the bill could move to markup by mid-May.
Why it matters
The executive case isn't baseless. BlackRock's IBIT and Fidelity's FBTC have collectively pulled billions in net inflows, with spot Bitcoin CVD data confirming aggressive institutional buying through regulatory uncertainty. Stablecoins USDT and USDC now underpin over $100 billion in daily trading volume globally, and the sector's market cap has crossed $320 billion without the Clarity Act's stablecoin provisions ever becoming law. Grayscale's SEC court win and ETF approvals did what legislation hasn't — the industry has adapted.
Yet Senator Cynthia Lummis's warning at Bitcoin Conference 2026 is the other side of that bet: a 2026 stall likely means no market structure law until 2030 or later. Polymarket pricing puts 2026 enactment at 50-50 or lower, and TD Cowen analyst Jaret Seiberg has noted passage may require a deal that dissatisfies both crypto and banking equally — a rough definition of workable compromise.
Market impact
Ripple CEO Brad Garlinghouse has shifted his passage prediction twice: 80% odds by end of April in February, revised to end of May on April 13, citing "peak frustration" as a signal that compromise was near.
Frequently asked questions
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What is the Clarity Act and what would it do?
The Clarity Act is federal market-structure legislation for crypto that cleared the House in July 2025 on a 294–134 bipartisan vote. It would define regulatory jurisdiction between the SEC and CFTC over digital assets, set stablecoin rules, and address DeFi provisions.
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Why has the Clarity Act stalled in the Senate?
Three issues have stalled the bill: stablecoin yield language, DeFi provisions, and securing the full Republican committee bloc needed to advance. Senator Thom Tillis requested additional review time in late April, pushing the markup into May in the third timeline revision.
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What did Franklin Templeton's Chris Perkins say about crypto without the Clarity Act?
Perkins, Franklin Templeton's head of digital assets, said the $2.7 trillion crypto market will be "just fine" if the Clarity Act fails to pass. He argued institutional rails have already been built without federal market-structure legislation in place.
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How has crypto grown without the Clarity Act passing?
BlackRock's IBIT and Fidelity's FBTC have collectively pulled billions in net ETF inflows through regulatory uncertainty. USDT and USDC now underpin over $100 billion in daily trading volume, with combined stablecoin market cap above $320 billion — all without the Clarity Act's stablecoin provisions becoming law.
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What happens if the Clarity Act doesn't pass in 2026?
Senator Cynthia Lummis warned at Bitcoin Conference 2026 that a 2026 stall likely means no market structure legislation until 2030 or later. Polymarket pricing puts 2026 enactment at 50-50 or lower, with passage potentially requiring a compromise that dissatisfies both the crypto lobby and the banking sector.
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