US Senate moves toward CLARITY Act markup

TLDR

The US Senate is preparing a long-delayed committee markup of the Digital Asset Market Clarity Act, a major crypto market structure bill.

1. Senate Banking is poised to notice a CLARITY Act markup, with draft text circulating and a possible committee vote as soon as this month.
2. The bill would set a federal framework for digital assets while severely restricting stablecoin interest, and it still faces fights over ethics rules and agency powers.
3. If the markup proceeds smoothly, a Senate vote in early summer is possible, but failure in the next few weeks could push comprehensive US crypto legislation into the next political cycle.

Deep Dive

1. Where The Bill Stands

The Digital Asset Market Clarity Act (often called the CLARITY Act) passed the House in July 2025 with a 294134 bipartisan vote and has been stuck in the Senate since then. Recent reporting says the Senate Banking Committee is preparing to formally notice a markup and has circulated draft legislative text to industry groups ahead of a potential vote as soon as this week or mid May.

White House adviser Patrick Witt has said the administration wants the bill through Congress by around July 4, with a sequence of Banking Committee markup, a Senate floor vote, then final House action. Prediction markets and analysts now put passage odds in the roughly mid?50% to mid?60% range in 2026, up from earlier levels as momentum has improved.

2. What The CLARITY Act Changes

Substantively, CLARITY is the main vehicle for a US-wide market structure rulebook for crypto. It is expected to clarify which tokens fall under CFTC versus SEC jurisdiction, define categories of digital commodities, and create a registration regime for trading platforms, brokers, and custodians.

The biggest fight has been over stablecoin rewards. Compromise language from Senators Thom Tillis and Angela Alsobrooks would effectively ban passive, deposit-like yield on stablecoin balances across issuers, exchanges, and brokers, while still allowing activity-based rewards tied to usage. Banks largely support this restriction, while many crypto firms see it as a hit to yield products.

A separate battle concerns ethics and conflicts of interest. Senator Kirsten Gillibrand and others want strong limits on senior officials holding or promoting crypto, while the White House favors broad ethics rules but not provisions that single out specific politicians.

3. What To Watch Next

Near term, the key signal is whether the Banking Committee actually notices and completes a markup and how many amendments are adopted, especially on stablecoins and ethics.

If the bill clears committee with a workable compromise, the next inflection points are a Senate floor vote targeted for early summer and whether the final text keeps enough industry support. If talks stall again, several senators and market observers warn that the window may close until after the 2026 midterms, leaving crypto under the current patchwork of enforcement and guidance.

Conclusion

The move toward a CLARITY Act markup marks the most concrete US progress in years toward a unified crypto market framework. For users and builders, it raises the odds of a future with clearer national rules, but it also points to tighter treatment of stablecoin yield and more formal oversight of exchanges and intermediaries. The next few weeks of committee action and amendments will determine whether that framework arrives soon or slips back into political gridlock.