Crypto industry coalition urges Senate CLARITY markup

TLDR

A large crypto industry coalition is pressing the US Senate Banking Committee to formally mark up the CLARITY Act after a stablecoin yield compromise resolved the bills biggest obstacle.

1. More than 100 crypto firms, coordinated by major trade groups, have urged Senate Banking to schedule a markup of the CLARITY Act, the main US digital asset market structure bill.
2. The Act would divide jurisdiction between the SEC and CFTC and adopts a compromise that bans bank?like passive stablecoin yield while preserving activity?based rewards under strict rules.
3. Next signals include an SECCFTC roundtable, a potential markup the week of 11 May, and whether remaining disputes over DeFi and Republican unanimity stall the bill again.

Deep Dive

1. Coalition Push And Markup

According to a CoinsKid policy summary, more than 100 firms including exchanges, custodians, DeFi projects and venture funds, coordinated by the Blockchain Association and Crypto Council for Innovation, have endorsed the CLARITY compromise and urged Senate Banking to hold a markup hearing on the bill.

Separate coverage notes that groups such as Coinbase, Circle and Ripple are among those calling on the committee to move forward with markup, which is the formal session where senators debate, amend and vote a bill out of committee toward a full Senate vote. Without markup, the bill cannot progress.

2. What CLARITY Would Change

The CLARITY Act, already through the House, would define when digital assets are treated as securities versus commodities and clarify SEC versus CFTC oversight, giving projects and exchanges a more predictable compliance path. Reports on the Senate draft describe a framework where decentralized, non?controlled tokens fall to the CFTC, while assets tied to investment expectations and centralized teams remain under SEC rules.

On stablecoins, the new compromise bans rewards that are economically or functionally equivalent to bank deposit interest, but allows rewards tied to bona fide activities such as payments, governance or staking, subject to detailed implementing rules. That forces platforms to shift from buy and hold reward models to buy and use incentives, while reducing direct competition with bank savings products.

3. Timeline And Key Risks

Regulators have scheduled a CLARITY Act roundtable bringing SEC and CFTC officials together with industry as one of the final steps before markup, with Senate Banking eyeing the week of 11 May for committee action. Prediction markets currently see a better?than?even chance of the bill becoming law in 2026, reflecting the momentum after the yield deal.

However, several risks remain. Senate Republicans still seek unanimous committee support, with at least one holdout, and law enforcement groups have raised concerns about provisions that would shield DeFi developers from liability for user misconduct. Bank lobbies could also renew opposition once markup is on the calendar, especially around stablecoin competition with deposits. If the bill slips past this political window, some senators warn that meaningful crypto legislation could be delayed for years.

Conclusion

The coalitions push shows the crypto industry is willing to accept tighter limits on passive stablecoin yield in exchange for broader legal clarity on tokens and market structure. If the CLARITY Act clears markup and advances, it could replace much of todays regulation?by?enforcement with clearer categories and responsibilities, improving planning for exchanges, stablecoin issuers and DeFi projects. If it stalls again, the uncertainty that has weighed on US?linked crypto activity is likely to persist.