THE US CLARITY Act, which aims to provide the US crypto industry with more regulatory clarity, will likely be finalized in May, according to Galaxy Digital CEO Mike Novogratz.
“So this is going to get done. It probably gets done in May. I would say the first week of May is when it goes to the committee, and then, you know, soon after Trump will be signing this thing in June,” Novogratz told SkyBridge Capital founder Anthony Scaramucci on a podcast published to YouTube on Friday.
“It’s wildly important for it to get done for both Democrats and Republicans,” Novogratz added, following a disappointing week for the crypto industry after the Senate Banking Committee did not schedule a markup hearing by Friday, as many in the industry had expected.
Novogratz reiterated that the legislation will allow large institutions, such as SpaceX and Google, to be “tokenized and sold to people around the world.”
CLARITY Act could open the US economy to over 5 billion people
“There are eight and a half billion people, probably five and a half billion don’t have access to our financial products,” Novogratz said, adding:
“This phone with a crypto wallet is going to be the way the kid in Bhutan or Batswana or Bolivia or Paraguay, you name it, is participating in the American economy.”
The passage of the US CLARITY Act is seen as a major potential catalyst not just for the crypto market, but for broader innovation in the country, especially after a number of firms left the US during the previous Biden administration due to an unfavorable regulatory environment.
Source: Nic Puckrin
Many crypto market participants had expected the CLARITY Act to clear Congress earlier this year, particularly after it passed the House in July 2025 with bipartisan support.
However, ongoing disputes have slowed down the progress, most notably a clash between the banking sector and the crypto industry over whether stablecoin yields could undermine banks’ competitiveness.
US Senator Cynthia Lummis warned on April 10 that the window to pass the bill may be closing.
“This is our last chance to pass the Clarity Act until at least 2030. We can’t afford to surrender America’s financial future,” Lummis said in an X post.
Some industry execs are skeptical of the CLARITY Act timeline
Others in the industry are more skeptical of its chances of passing this entire year.
Related: Coinbase says capital access beats income in wealth creation
Galaxy Digital head of firmwide research Alex Thorn said in an X post on Wednesday that he puts the current odds of the CLARITY Act passing in 2026 at 50%.
Source: Leo Lanza
Thorn said in a report on the same day that the Senate Banking, Housing, and Urban Affairs Committee (SBC) is expected to announce a markup hearing this week, likely for the last week of April, however that did not happen.
“If markup slips past mid-May, odds will drop sharply,” Thorn added.
Magazine: AI-driven hacks could kill DeFi — unless projects act now