Patrick McHenry, vice chairman of Ondo Finance and former chairman of the House Financial Services Committee, said he expects the long-awaited U.S. crypto market structure legislation, widely known as the CLARITY Act, to advance in the coming months, potentially reaching the president’s desk before Memorial Day.
McHenry said negotiations around the bill are progressing despite ongoing disagreements, particularly over rules governing stablecoin yield payments. He said that discussions led by White House officials have brought crypto companies and banking representatives together to seek a compromise that would allow the broader legislation to move forward.
Stablecoin Yield Debate Remains the Key Obstacle
According to McHenry, cryptocurrency firms have shown willingness to negotiate on how yield-bearing stablecoins should operate, while banks remain cautious due to concerns that higher-yield digital dollar products could attract deposits away from traditional financial institutions. He said the issue is likely to be resolved because market structure legislation cannot advance without a final agreement on this point.
Lawmakers and industry participants view the stablecoin yield debate as the primary hurdle preventing full regulatory clarity for the digital asset sector.
DeFi Framework Seen as Essential to Final Legislation
McHenry also said that decentralized finance (DeFi) must be addressed in the legislation for it to succeed. He said the benefits of blockchain-based financial systems—such as faster transactions, continuous trading, and lower lending costs—are closely tied to DeFi innovation, making it an important component of any comprehensive regulatory framework.
Regulatory Coordination and Policy Clarity
Another focus of the proposed legislation is improving coordination between U.S. regulators overseeing securities, commodities, and stablecoins, a move McHenry said would simplify compliance and provide clearer rules for investors and companies. Harmonizing these regulatory frameworks is expected to reduce confusion for market participants and support broader adoption of tokenized financial products.
Outlook for Passage
Despite political disagreements and ongoing negotiations, McHenry expressed confidence that lawmakers will reach common ground. He said Senate action could occur in the coming months, followed by final legislative approval, allowing the administration to sign the market structure bill into law later this year if current momentum continues.
