Over 100 Crypto Firms Urge Senate to Pass CLARITY Act Before End‑May Deadline

TL;DR More than 100 crypto companies told the Senate that postponing the CLARITY Act risks a regulatory deadlock that could push digital‑asset activity abroad.

Context The CLARITY Act aims to draw a clear line between SEC and CFTC oversight, set rules for stablecoins, and protect non‑custodial developers from overreach. With Senator Bernie Moreno’s end‑of‑May ultimatum looming, industry groups say further delay could leave the U.S. with either no framework or a weakened one that satisfies no one.

Key Facts A letter signed by over 100 firms, coordinated by the Crypto Council for Innovation and the Blockchain Association, states that timely action is critical because other major jurisdictions have already implemented comprehensive market structures. The letter warns that inaction risks losing investment, jobs, and technological development offshore. Anil Oncu, CEO of Bitpace, added that adoption is rendering the “banks versus crypto” framing obsolete, noting Circle and Ripple securing OCC‑granted national trust bank charters, Bybit’s plan to offer direct bank accounts, European lenders launching a euro‑backed stablecoin, and Standard Chartered developing a Hong Kong‑dollar token.

Market data underscores the stakes: Bitcoin (BTC) traded at $27,400, up 2.1% in the past 24 hours with a market cap of roughly $540 billion; Ethereum (ETH) sat at $1,850, down 0.5%, market cap near $220 billion; Coinbase (COIN) shares fell 3.4% to $58.20, valuing the exchange at about $13 billion. By contrast, the S&P 500 rose 0.8% on the same day, highlighting how crypto‑specific policy uncertainty can diverge from broader equity trends.

What It Means If Congress fails to pass the CLARITY Act before Moreno’s deadline, the U.S. could see a shift of crypto‑related activity to jurisdictions with clearer rules, potentially eroding its position as a hub for blockchain innovation. Market participants will watch for any Senate markup or committee vote in the coming weeks, as well as reactions from major stablecoin issuers and traditional banks exploring digital‑asset services.