The U.S. Senate Banking Committee is preparing to consider the Digital Asset Market Clarity Act next week, setting up a major test for long-awaited cryptocurrency market structure legislation. Senate Banking Committee Chairman Tim Scott said the panel will hold an executive session on May 14 at 10:30 a.m. in the Dirksen Senate Office Building in Washington, D.C. The meeting is expected to include consideration of the Clarity Act, a bill designed to define federal oversight of digital assets. The bill would clarify when crypto tokens are treated as securities, commodities or other types of digital assets. It would also divide regulatory authority between the Securities and Exchange Commission and the Commodity Futures Trading Commission. Reports said draft legislative text has been circulated to selected industry participants ahead of a possible committee vote. Some language remains under revision, with additional edits expected to reflect priorities from Democratic offices. Senate Markup Puts Crypto Bill Back in Focus The Clarity Act has been a top priority for the crypto industry, which has argued that fragmented federal rules have slowed growth and left companies uncertain about compliance obligations. The House passed its version of the bill in July last year by a 294-134 bipartisan vote. The Senate must now advance its own version before the legislation can move toward final approval and potential reconciliation with the House text. Consequently, the markup is the next step in the Senate process. Banking Committee members are expected to vote on the bill text and any proposed amendments. If approved, the Banking Committee language would then be combined with the Senate Agriculture Committee’s section to create one final Senate version before the bill heads to the full chamber for a floor vote. Senator Cynthia Lummis urged lawmakers to move the bill through committee, writing on X that the Clarity Act should pass out of the Banking Committee on Thursday. The committee process comes as the White House has pushed for broader crypto legislation to move quickly. Earlier reports said the administration had targeted July 4 as a preferred deadline for passage, though several policy disputes remain unresolved. Industry participants are watching Monday and the days before the May 14 session for signs of whether final text is ready, whether amendments will be offered and whether enough bipartisan support exists to advance the bill. Stablecoin Yield Dispute Remains Central One of the main disputes involves stablecoin rewards. A compromise brokered by Republican Senator Thom Tillis and Democratic Senator Angela Alsobrooks would prohibit customer rewards on idle holdings of dollar-backed stablecoins because of their similarity to bank deposits. The language would still allow rewards connected to other stablecoin activities, such as sending payments. Crypto firms have argued that broader limits on third-party rewards would reduce competition and restrict product design. Banking trade groups have objected to the compromise, saying it still leaves room for reward programs that could resemble yield. Groups, including the Bank Policy Institute, American Bankers Association, Independent Community Bankers of America, Financial Services Forum, National Bankers Association, and Consumer Bankers Association, reportedly sent proposed edits to Senate Banking leadership. Banks say stablecoin yield could pull deposits from the insured banking system and create financial stability concerns. Crypto companies say banks are seeking to limit payment innovation and protect their deposit base from competition. A Senate aide cited in reports said lawmakers have already shifted attention to other unresolved areas, including ethics language. That suggests banking groups may face difficulty reopening the yield issue before markup. Voter Polling Shows Cross-Party Support As we reported, new HarrisX polling found that 52% of registered voters support the Clarity Act after a neutral description, while 11% oppose it. The survey measured voter sentiment rather than a senator-by-senator count. The poll reported net support across major political groups, with Democrats at plus 48, Republicans at plus 43 and Independents at plus 32. Coinbase Chief Executive Brian Armstrong also pointed to the polling as evidence of bipartisan support. “Passing the CLARITY Act is a bipartisan, and winning, issue,” Armstrong wrote on X. HarrisX also found that 70% of voters believe the United States should have already passed crypto legislation. Another 62% said it is important for the United States to set global rules for digital finance, while 60% preferred clear federal legislation over case-by-case enforcement. Political questions still remain. Many Democrats have argued that the bill needs stronger anti-money-laundering provisions and tighter ethics rules to prevent public officials from profiting from crypto ventures. The bill would need support from at least seven Democrats in the full Senate to pass. That makes the final language on stablecoins, ethics, DeFi oversight and market oversight central to the bill’s path. Prediction market Polymarket recently showed elevated odds at 75% that the Clarity Act could become law this year, though legislative timing remains uncertain. The crypto industry is pressing for passage before the November midterm elections, when control of the House could change.
