Key Highlights
- John Deaton said the CLARITY Act may not pass in 2026 if progress stalls until summer and the Senate shift focuses on midterm elections.
- Stablecoin rewards remain a key issue, with passive yields banned and only activity-based rewards allowed.
- Deaton’s Senate run could also influence the bill’s future and its chances of passage in Congress.
Pro-XRP lawyer John Deaton said that the CLARITY Act, a U.S. crypto bill, is unlikely to pass this year if it does not make progress before summer.
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In a recent interview with Paul Barron Network, Deaton explained that the Senate is likely to turn its attention to the midterm elections in November, which could make it difficult for the bill to advance. He noted that the U.S.-Iran war might make lawmakers less able to work on the bill.
“Iran, the you know, it makes it harder because you’re trying to get funding for a war that obviously the Democrats have been very critical of. And so if we could end that and just get them focused on this Clarity Act, then I think it has a good shot. But if we get into the summer months, it’s just probably not going to happen,” he said.
Timing and political control could decide the bill
During the interview, Deaton said that the bill’s passage depends on timing and political control. He added that if both the Senate and House change hands and Democrats gain control, the crypto bill could face additional challenges.
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In particular, Senator Elizabeth Warren, known for her cautious stance on cryptocurrency, would become the Chair of the Senate Banking Committee if Democrats take control. This position could make it harder for the CLARITY Act to move forward out of the committee stage.
Stablecoin rules remain a key issue
Deaton also pointed to provisions in the bill that are causing debate. The CLARITY Act currently limits stablecoin rewards to activity-based incentives and bans passive yield payments on stablecoin balances.
Stablecoins are digital currencies that are tied to a stable asset, like the U.S. dollar, and stablecoin rewards are a way users can earn extra money by holding or using these coins.
Deaton said that while it is concerning that stablecoin holders cannot earn passive yield, “perfection cannot get in the way of good.” He echoed the position of White House crypto adviser Patrik Witt and Ripple CEO Brad Garlinghouse, emphasizing the need to advance the bill even if all issues are not fully resolved.
The bill’s markup stage, which is a review and discussion of its details in the Senate, is expected to happen this month after lawmakers return from recess. A key point of contention remains the clash between banks and the crypto industry over stablecoin yield rules.
Deaton’s Senate run adds context
Deaton’s involvement is notable because he is currently running for the U.S. Senate as a Republican. If elected, he could have a direct role in shaping or voting on the CLARITY Act. In addition, his legal background and support for XRP and cryptocurrency give him influence over how crypto rules are discussed in Congress.
This also means that his position on the bill is both personal and political, as advancing the legislation could affect his credibility and support among voters who follow cryptocurrency issues.
Also Read: U.S. Treasury Moves to Enforce Stablecoin Law, Seeks Public Input
