Even as Bitcoin Surpasses $80,000... US Senate's 'CLARITY Act' Markup Blocked by Housing Policy Dispute

On May 5, 2026, Bitcoin reclaimed the $80,000 level, driven by spot ETF inflows and easing geopolitical tensions. However, the legislative schedule for the CLARITY Act, which was highly anticipated as the 'end point' for US crypto regulation, has been pushed back once again. The bill, regarded as a decisive framework for digital assets, is currently stalled at the Senate Banking Committee's markup stage.

This delay stems not from debates over blockchain technology, but from confrontations surrounding housing policy and complex 'internal Republican vote counting' required for committee passage. As of May 5, 2026, the Senate Banking Committee has failed to meet its April markup goal and has yet to confirm a specific schedule for May.

As the markup schedule originally planned for early May becomes uncertain, optimism for legislative completion is wavering. Previously, Senator Cynthia Lummis and others expected processing within May after the April markup fell through, but Galaxy Research expressed concern over the prolonged regulatory vacuum, noting that the legislative calendar is rapidly shrinking.

Even if the CLARITY Act passes the Senate Banking Committee markup, it still faces a difficult path: securing 60 votes on the Senate floor, reconciling with the Agriculture Committee's version, and reaching an agreement with the House-passed version.

One of the key variables in this delay is the grievance raised by Senator John Kennedy regarding housing policy. Senator Kennedy is reportedly using housing policy issues, unrelated to crypto regulation, as leverage to block the Banking Committee's progress. This suggests the situation has shifted from technical disputes over stablecoin yields to a tactical blockade involving political interests.

Tillis-Alsobrooks Compromise and Banking Sector Pushback

The compromise proposed by Senators Thom Tillis and Angela Alsobrooks to resolve the stablecoin yield issue was expected to serve as a bridge between the industry and the banking sector. Senator Tillis argued that this proposal would pave the way for bipartisan passage, but the US banking industry maintains its position that the proposal is insufficient to protect bank deposits. The banking industry is demanding amendments to the bill, citing that stablecoin regulation could undermine the stability of the existing financial system.

• Adjustment of language regarding stablecoin yields
• Clarification of Decentralized Finance (DeFi) regulations
• Vote counting to ensure a unified front among Republican members
• Establishment of protection clauses for software developers

Senate Banking Committee Chairman Tim Scott is struggling to consolidate votes within the Republican Party. In particular, disagreements among members regarding the scope of liability exemptions for software developers and DeFi-related provisions remain unresolved. Chairman Scott was optimistic that these issues could be resolved within two weeks, but the actual political arithmetic is proving more complex than expected.

In contrast to the legislative stalemate in Washington, the cryptocurrency market is showing signs of recovery. On Monday, May 4, 2026, more than $532 million flowed into US spot Bitcoin ETFs, which is interpreted as a result of improved risk asset sentiment following news of a ceasefire between the US and Iran. As institutional adoption accelerates, market uncertainty is expected to grow if legislative delays continue.

Beyond crossing the threshold of the Senate Banking Committee, several procedures remain for the bill to be enacted into law. Galaxy Research warned that the current legislative calendar is being rapidly exhausted and predicted that each stage would take significant time. In particular, friction that may arise during the final agreement process with the House is cited as a variable.

• Securing 60 votes on the Senate floor
• Coordination with the Senate Agriculture Committee version
• Final agreement with the already passed House bill
• Presidential signature and promulgation

Experts warn that if even the May markup falls through, the CLARITY Act will be caught in the massive political vortex of the 2026 election cycle. Contrary to market expectations for regulatory clarity, the Congressional clock appears stalled, tied up in non-essential conflicts such as housing policy.

Ultimately, the fate of the CLARITY Act depends on how quickly Chairman Tim Scott can resolve the 'arithmetic' issues within the Republican Party and how he accommodates Senator John Kennedy's housing policy demands. While the market is racing ahead, surpassing $80,000, the legal foundation to support it remains in a fog.