TLDR
- The Senate Banking Committee has scheduled a markup hearing for the Digital Asset Market Clarity Act on May 14
- The bill stalled in January after Coinbase pulled support over stablecoin yield rules and DeFi regulations
- A compromise on stablecoin yield was brokered by Senators Tillis and Alsobrooks last week
- Banking industry groups still have concerns and say more work is needed on the bill’s language
- Senator Gillibrand wants an ethics provision added to stop government officials profiting from crypto
The Senate Banking Committee has set May 14 as the date for its markup hearing on the Digital Asset Market Clarity Act of 2025, known as the Clarity Act. The hearing will begin at 10:30 a.m.
Big step forward.
Appreciate @SenatorTimScott and the Senate Banking Committee moving toward markup of the CLARITY Act on May 14.
Clear market structure rules are essential for protecting consumers, supporting innovation, and ensuring this technology develops in the United… pic.twitter.com/ngqCOZmJZi
— Faryar Shirzad 🛡️ (@faryarshirzad) May 8, 2026
This is a key step in moving the bill toward becoming law. A markup hearing is where a committee reviews and votes on legislation before it goes to the full Senate.
The bill has had a rough few months. In January, Coinbase CEO Brian Armstrong announced the exchange was pulling its support. His concerns included a lack of legal protections for open source software developers, a ban on stablecoin yield, and rules around decentralized finance.
That withdrawal effectively stalled the bill’s progress for months.
Last week, Senators Thom Tillis and Angela Alsobrooks released a compromise text to address the stablecoin yield issue. The compromise would ban crypto companies from offering yield on static stablecoin reserve holdings, but allow rewards when stablecoins are involved in active financial activities.
Coinbase responded positively to the news. Chief legal officer Paul Grewal posted on X: “It’s on like Donkey Kong.” Chief policy officer Faryar Shirzad called it a “big step forward” and said the bill is essential for protecting consumers and keeping crypto innovation in the United States.
Senator Cynthia Lummis, a pro-crypto voice in the Senate, also backed the move, posting on X: “Let’s pass the Clarity Act out of the Banking Committee on Thursday!”
Banking Groups Still Have Concerns
Not everyone is on board. A letter signed by several banking trade groups — including the American Bankers Association, the Bank Policy Institute, and the Independent Community Bankers of America — said “additional work is needed” on the bill’s language. They submitted specific edits to the compromise text released last week.
Despite those objections, the scheduling of the markup suggests Senate leaders are ready to move forward with the current version.
Ethics Provision Remains Unresolved
Senator Kirsten Gillibrand, a long-standing supporter of the crypto industry, has raised a separate issue. She wants the bill to include an ethics provision that would stop senior government officials from profiting off the crypto industry while they are regulating it.
A poll commissioned by CoinDesk found that 73% of registered US voters support that restriction.
However, that provision may not be included in the Senate Banking Committee’s version of the bill. After the Banking Committee’s markup, the Senate will need to merge its version with the Senate Agriculture Committee’s version before the full Senate can vote.
Coinbase’s vice president of US policy, Kara Calvert, had predicted the markup at the Consensus 2026 conference just days earlier. She also noted the bill will need at least 60 votes and bipartisan support to pass.
