Senate targets May markup for crypto bill

TLDR

The US Senate Banking Committee is aiming to mark up a major crypto market structure bill in May, creating the tightest timeline yet for comprehensive US digital asset legislation.

1. Chair Tim Scott says the committee is "nearing consensus" and targeting the week of 11 May for a bipartisan markup of the CLARITY Act.
2. The bill, already through the House, would define federal crypto market rules and follows a White House push to pass it by around 4 July.
3. Progress still depends on resolving ethics rules, DeFi liability, and holdout senators, so slippage or failure remains a real risk.

Deep Dive

1. Markup Plan And Legislative Clock

Senate Banking Committee Chair Tim Scott has said the panel is "nearing consensus" and working toward a bipartisan markup of the Digital Asset Market Clarity Act (the CLARITY Act) in May, with the committee targeting the week of 11 May for that session. This is the firmest Senate timeline so far after two missed markup attempts earlier in 2026.

The House passed the bill 294134 in July 2025, and it has already cleared the Senate Agriculture Committee, but it still needs a Banking Committee markup, a 60 vote Senate floor win, reconciliation between versions, and then the presidents signature before becoming law. With Congress breaking for Memorial Day recess on 21 May, there are only a few effective working weeks to move the bill before the political calendar tightens further.

2. What The Clarity Act Would Change

The CLARITY Act is a broad market structure bill that would create a federal framework for digital assets, clarifying consumer protection rules, market manipulation protections, and how oversight is split between the CFTC and SEC. Supporters argue that todays uncertainty keeps US firms from launching products, raising capital, or scaling domestically, and pushes activity into jurisdictions that already have clear rules such as the EU under MiCA.

A key logjam was stablecoin yield: a compromise between Senators Thom Tillis and Angela Alsobrooks reportedly bans bank?like interest on stablecoins while still allowing rewards tied to spending, which both banks and crypto firms dislike but which negotiators consider balanced. The White House is now explicitly targeting passage around 4 July and has framed the bill as critical for US leadership in global digital asset standards.

3. Sticking Points And How It Could Slip

Even with a May markup target, several unresolved issues could slow or derail the bill. Senator John Kennedy has held back support on the Banking Committee, and law enforcement groups have raised concerns about proposed liability for DeFi developers.

On the Democratic side, Senator Kirsten Gillibrand has said there will be no deal without strong ethics provisions that restrict senior officials, including the president and members of Congress, from conflicted crypto holdings. Negotiations are also ongoing over anti?money?laundering and consumer protection language. Some lawmakers and industry figures have warned that failure to move the bill before key recess dates could push meaningful crypto legislation out toward 2030.

Conclusion

A planned May markup puts the CLARITY Act closer than ever to becoming the first comprehensive US crypto market framework, but the path still runs through contentious fights over ethics, DeFi, and stablecoins. For crypto users and firms, the next few weeks of Senate committee scheduling and negotiations will determine whether the US moves toward clear national rules or remains stuck in a patchwork of agency actions and offshore competition.