Republican divisions over surveillance powers and federal spending are stalling progress on the CLARITY Act, threatening to derail what is widely seen as the most significant US crypto legislation in years.
House Republicans remain split on reauthorising FISA Section 702 before its April 19 deadline, while Senate Republicans are deadlocked on budget reconciliation tied to immigration enforcement funding.
The legislative bottleneck comes as the CLARITY Act faces a narrow window to advance through the Senate Banking Committee before midterm campaigning consumes the congressional calendar.
“This is our last chance to pass the Clarity Act until at least 2030,”
Said Senator Cynthia Lummis.
The broader gridlock extends beyond crypto policy, as disputes over surveillance authority, spending bills, and foreign policy measures continue to absorb limited legislative time and attention in both chambers.
Even if the Senate Banking Committee advances the bill in late April, it must still pass a full Senate vote, reconcile competing versions, and secure presidential approval within an increasingly constrained timeline.
The CLARITY Act aims to resolve long-standing jurisdictional uncertainty between US regulators overseeing digital assets, a move analysts say could unlock institutional investment but now risks delay as political infighting intensifies.