The crypto market got a strong boost after progress on the CLARITY Act. U.S. Senators Thom Tillis and Angela Alsobrooks reached a key deal, lifting investor confidence.
The Bitcoin price jumped as regulatory clarity improved. While crypto-linked stocks also rose. Now all eyes are on 21 May.
According to a joint statement from Senators Thom Tillis and Angela Alsobrooks, a final agreement has been reached on one of the most debated parts of the bill, i.e, stablecoin rewards.
After months of closed-door talks involving the White House, banks, and crypto firms, both sides agreed on a middle ground. Both senators made their stance clear, stating,
“We respectfully agree to disagree,” signaling that the compromise is final and ready to move forward.
Senator Thom Tillis explained the outcome in detail.
“Our compromise prohibits stablecoin rewards from resembling interest on bank deposits,” while also confirming that “it allows crypto companies to offer other forms of customer rewards.
However, this approach tries to balance concerns from both banks and crypto companies.
The compromise directly addresses the concerns of traditional banks.
Banks had warned that stablecoins offering interest-like rewards could pull deposits away from the banking system. The new rule removes that risk by restricting such reward structures.
At the same time, lawmakers pointed toward balanced approaches, noting the goal is to “encourage compromise and avoid letting the perfect become the enemy of the good.”
This means crypto firms still have room to innovate, while the financial system remains protected.
The crypto market responded almost immediately. Bitcoin surged past $81,000, and crypto-related stocks, including Coinbase (COIN), MicroStrategy (MSTR), and Circle (CRCL), rose 4% to 8%. The rally shows how sensitive the market is to regulatory clarity.
Prediction markets are also reflecting this shift. Polymarket shows that the chances of the CLARITY Act becoming law in 2026 have jumped to 70%, up from 42% previously.
That gives the Clarity Act a window of roughly two weeks before Congress’s Memorial Day recess on May 21.
If the markup does not happen before that deadline, the political calendar could push the entire bill past the point of no return for 2026.
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