US Senate Banking Committee Marks Up CLARITY Act Amid Banking Opposition
The U.S. Senate Banking Committee is marking up the CLARITY Act to establish a federal regulatory framework for digital assets, dividing oversight between the SEC and CFTC. Despite House passage, the bill faces intense opposition from banking groups fearing deposit flight due to stablecoin yields, and political deadlock over ethics provisions targeting officials’ crypto ventures. This pivotal legislative step aims to clarify market structures and integrate cryptocurrencies into the formal financial system, though reconciliation with the Agriculture Committee and bipartisan disagreements remain significant hurdles before a final Senate vote.
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A16z: US CLARITY Act Will Boost Domestic Innovation and Global Markets
Venture capital firm a16z crypto asserts that the proposed US CLARITY Act will significantly benefit domestic innovation by providing necessary regulatory clarity to the cryptocurrency industry. The firm argues that balanced legal frameworks protecting consumers while fostering innovation create positive ripple effects in global markets, citing the recent passage of the GENIUS Act for stablecoins as a precedent for economic growth and US dollar dominance. Although the CLARITY Act has advanced through the Senate Banking Committee with bipartisan support, asset manager Grayscale notes that final passage requires additional Democratic votes in the full Senate. Industry leaders, including Sharplink Gaming’s CEO, view the legislation as a critical signal for international jurisdictions. Despite remaining legislative hurdles, market sentiment remains optimistic, with analysts highlighting the potential for the US to maintain leadership in the digital asset sector through clear regulatory standards.
Cointelegraph.com NewsCLARITY Act Advances in Senate Banking Committee with Bipartisan Support
The U.S. Senate Banking Committee has advanced the Digital Asset Market CLARITY Act following a bipartisan 15-9 vote, marking a significant step toward establishing a regulatory framework for digital assets. The legislation aims to divide oversight responsibilities between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). Chairman Tim Scott secured the necessary support by reinstating a decentralized finance (DeFi) compromise amendment, which attracted two Democratic senators, Ruben Gallego and Angela Alsobrooks, to join all Republican committee members. Opposition was led by Senator Elizabeth Warren, who criticized the bill as industry-friendly and harmful to existing securities laws. Despite the committee's approval, the bill faces further hurdles, including reconciliation with a version from the Senate Agriculture Committee and addressing ethics provisions related to political figures' crypto ties. The legislation now moves toward a full Senate floor vote, where it will require 60 votes to pass. Industry leaders have praised the development as a defining moment for American leadership in the crypto sector, while lawmakers aim to finalize the process by August.
UnchainedCLARITY Act Heads to Senate Banking Committee for Markup Amid Stablecoin Yield Dispute
The Digital Asset Market Clarity Act (CLARITY Act), significant crypto market infrastructure legislation, is scheduled for a markup hearing by the US Senate Banking Committee. While the House approved a version last year, the Senate bill faces hurdles, particularly regarding stablecoin yields. Legacy banks successfully lobbied to prohibit interest on stablecoins to protect their profits, though crypto innovators may still offer rewards. The legislation aims to replace regulation-by-enforcement with a predictable framework, clarifying jurisdiction between the SEC and CFTC based on asset characteristics. Key provisions include banning the Federal Reserve from issuing a consumer central bank digital currency (CBDC), establishing safe harbors for developers and non-custodial protocols, and extending Bank Secrecy Act rules to digital assets. Senator Tim Scott champions the bill as bipartisan and consumer-focused, while Senator Elizabeth Warren opposes it. The act also creates a joint advisory committee and an innovation sandbox. This markup serves as a critical precursor to a full Senate vote, potentially marking the largest change to securities law since 1933.
Crowdfund InsiderSenate Banking Committee Releases CLARITY Act Text Ahead of Markup
The U.S. Senate Banking Committee has released the final text of the Digital Asset Market CLARITY Act, including a manager's amendment, just hours before its scheduled markup on Thursday, May 14. The updated bill incorporates the Tillis-Alsobrooks stablecoin yield compromise and introduces new sections addressing insider trading and the Build Now Act. Key changes from previous drafts include redefined SEC authorities, updated definitions distinguishing decentralized finance (DeFi) from centralized finance (CeFi), and preserved developer protections. Industry reactions have been mixed but generally positive; Coinbase CEO Brian Armstrong noted that essential provisions were secured, while the DeFi Education Fund highlighted intact protections for infrastructure providers. Conversely, major banking associations rejected the stablecoin compromise, and Senator Elizabeth Warren criticized the lack of strict ethics provisions regarding official crypto profits. With bipartisan support growing despite political tensions, the White House aims for a July 4 signing, though some senators predict an August timeline. This legislative move represents a significant step toward establishing regulatory clarity for the digital asset industry in the United States.
UnchainedUS Senate Banking Committee Unveils Clarity Act Text Ahead of Hearing
The U.S. Senate Banking Committee has released the latest text of the Clarity Act, a landmark bill aiming to integrate the cryptocurrency industry into the regulated financial system. Unveiled just before a scheduled hearing, the legislation maintains legal protections for decentralized finance (DeFi) developers while addressing contentious issues regarding stablecoin yields. Committee Chairman Tim Scott praised the bill for prioritizing consumer safety and combating illicit finance. However, significant hurdles remain, particularly concerning a conflict-of-interest provision that Democrats demand but which the White House argues should not single out specific officeholders, including President Donald Trump. This ethical clause is currently excluded from the draft due to jurisdictional limits but must be resolved for final passage. Additionally, the bill requires merging with a version from the Senate Agriculture Committee. While industry lobbyists continue to push for stricter limits on stablecoin rewards, reports suggest foreign capital inflows could offset domestic banking disruptions. The administration targets a July completion, though senators predict an August finish, marking a critical step toward establishing comprehensive crypto market structure rules in the United States.
CoinDesk: Bitcoin, Ethereum, Crypto News and Price DataEthics Provisions Stall CLARITY Act Markup in Senate Banking Committee
The US Senate Banking Committee is scheduled to mark up the Digital Asset Market Clarity (CLARITY) Act this Thursday, following months of delays. While a compromise on stablecoin yields was recently reached, Democratic lawmakers, led by Senator Kirsten Gillibrand, remain firm on including strict ethics provisions. They argue that without measures to prevent conflicts of interest for elected officials, including the President and Vice President, they will not support the bill. This stance is particularly relevant given President Donald Trump’s significant financial ties to the crypto industry through ventures like World Liberty Financial. Republican committee members, including Chair Tim Scott, contend that ethics issues fall outside the committee's jurisdiction and should be handled by the ethics committee. Despite these disagreements, proponents like Senator Cynthia Lummis express hope that bipartisan momentum will resolve the impasse. The bill, previously passed by the House in July 2025, still requires Senate approval and subsequent reconciliation with the House before it can be signed into law. The outcome hinges on whether Democrats’ ethical concerns can be addressed without derailing the broader market structure legislation.
Cointelegraph.com NewsSenate Banking Committee to Mark Up CLARITY Act, Defining Crypto Regulation
The U.S. Senate Banking Committee is scheduled to mark up the CLARITY Act on May 14, 2026, marking a pivotal moment for cryptocurrency regulation in the United States. This legislation aims to establish a formal market structure framework for digital assets, clarifying whether they fall under the oversight of the SEC or CFTC. The bill reflects a strategic shift in Washington, viewing blockchain infrastructure and stablecoins as critical to U.S. financial competitiveness and dollar dominance. However, significant disputes remain, particularly concerning stablecoin rewards and their impact on traditional banking deposits. Major banking associations argue that yield-bearing stablecoins undermine the insured banking system by draining low-cost deposits, while crypto firms contend that banning rewards stifles innovation and protects legacy institutions. A proposed compromise seeks to prohibit rewards on idle balances while allowing incentives tied to transactional activity. This legislative move represents the most serious congressional effort to date to resolve regulatory ambiguity, which industry leaders argue has driven innovation to jurisdictions with clearer frameworks like the EU and Singapore.
PYMNTS | | PYMNTS.comSenate Banking Committee Set to Vote on Clarity Act Amid Stablecoin and Ethics Disputes
The US Senate Banking Committee is scheduled to vote this Thursday on the Clarity Act, a pivotal cryptocurrency market structure bill. While industry leaders express growing optimism about its passage, significant hurdles remain regarding stablecoin rewards and ethical constraints on public officials. A major point of contention involves traditional banks opposing crypto firms offering yield on stablecoins, fearing competition with savings accounts. Despite a recent compromise proposed by Senators Thom Tillis and Angela Alsobrooks, banking lobbyists continue to push for stricter restrictions. Additionally, debates persist over whether the bill should include language prohibiting elected officials, such as President Donald Trump, from promoting personal crypto ventures. Senate Banking Chairman Tim Scott argues ethics provisions fall outside his committee's jurisdiction, but Democratic senators threaten to oppose the bill if these protections are excluded. The outcome of this vote is critical as Congress approaches its summer recess ahead of the midterm elections, potentially determining the future regulatory landscape for digital assets in the United States.
DecryptAmerican Bankers Launch Last-Ditch Effort to Block Crypto Market Structure Bill
The American Bankers Association (ABA) has initiated an urgent lobbying campaign against the Digital Asset Market Clarity Act, specifically targeting provisions related to stablecoin yields. ABA CEO Rob Nichols sent an emergency letter to bank CEOs on May 11, urging immediate engagement with senators before the Senate Banking Committee’s scheduled markup on May 14. Nichols argued that the current bill creates a loophole incentivizing deposit flight from traditional banks to stablecoins, posing risks to financial stability. This move triggered sharp backlash from crypto industry leaders and lawmakers. Coinbase Chief Legal Officer Paul Grewal dismissed the ABA’s concerns as misplaced, noting that previous negotiations had already addressed yield issues. Senator Bernie Moreno accused the banking sector of panic and deception, defending the bipartisan efforts behind the legislation. The CLARITY Act, which passed the House in July 2025, faces potential derailment due to this intensified lobbying and ongoing political standoff. The upcoming executive session in Washington, D.C., will determine if the bill advances to the full Senate, marking a critical juncture in US cryptocurrency regulation.
ZeroHedge NewsBanking Groups Escalate Opposition to Stablecoin Yield Ahead of Senate Vote
The American Bankers Association (ABA) has intensified its lobbying efforts against the Senate’s Clarity Act, warning that provisions allowing yield-bearing stablecoins could trigger significant deposit flight from traditional banks. As the Senate Banking Committee prepares to mark up the legislation, banking trade groups argue that stablecoins offering interest would act as substitutes for insured deposits, thereby draining essential funding for mortgages and business loans. They urge lawmakers to tighten yield limits to protect financial stability. Conversely, crypto and fintech firms contend that stablecoins provide faster payment solutions and innovative methods for moving money online. This ongoing clash over stablecoin yields, which previously complicated work on the GENIUS Act, threatens to delay broader cryptocurrency legislation. The dispute highlights the growing tension between traditional financial institutions seeking to preserve their deposit base and the emerging digital asset sector aiming for regulatory clarity and market expansion. The outcome of this legislative battle will significantly influence the future integration of stablecoins into the US financial system.
CoinDesk: Bitcoin, Ethereum, Crypto News and Price DataSenate Banking Committee to Vote on Landmark Clarity Act for Crypto Regulation
The United States Senate Banking Committee is scheduled to cast a decisive vote on the Clarity Act, a significant piece of legislation aimed at establishing a comprehensive regulatory framework for digital assets. This landmark bill seeks to clarify the jurisdictional boundaries between various federal regulators, addressing long-standing ambiguities that have hindered the growth of the cryptocurrency industry. A primary focus of the legislation is the resolution of ongoing disputes between crypto companies and traditional banking institutions regarding the issuance and oversight of stablecoins. By defining clear rules for these digital currencies, the act aims to foster innovation while ensuring financial stability and consumer protection. The vote represents a critical step in the US government's effort to integrate digital assets into the formal financial system, potentially setting a global precedent for crypto regulation. Industry stakeholders have closely watched this development, anticipating that the outcome will significantly influence the operational landscape for both emerging fintech firms and established banks engaging with blockchain technology.
QuartzSenate Banking Committee Schedules CLARITY Act Markup Amid Bank Lobby Opposition
The U.S. Senate Banking Committee is set to mark up the Digital Asset Market CLARITY Act of 2025 on May 14, despite intense opposition from major banking trade groups. The American Bankers Association, Bank Policy Institute, and Independent Community Bankers of America formally rejected a compromise regarding stablecoin yields, arguing that permitted activity-based rewards still function as interest-bearing deposit substitutes. The legislation aims to establish a federal framework dividing digital asset oversight between the SEC and CFTC, clarifying distinctions between securities and commodities. While the House passed its version in July 2025, the Senate bill must still be reconciled with language from the Senate Agriculture Committee before reaching a floor vote. Additional hurdles include Democratic demands for ethics provisions targeting political figures' crypto ventures. Chairman Tim Scott has not indicated delays, and Senator Cynthia Lummis urged swift committee advancement. With the White House targeting a July 4 signing, market prediction platforms estimate a 75% probability of the bill becoming law in 2026. This development marks a critical juncture in U.S. crypto regulation efforts.
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