The U.S. Senate Banking Committee is currently voting on the Digital Asset Market Clarity Act, known as the CLARITY Act, after lawmakers spent hours debating and reviewing more than 130 proposed amendments during the markup process. The legislation could become the most comprehensive crypto regulatory framework in U.S. history if it advances through Congress.
The markup session has included debate over amendments covering stablecoins, anti-corruption measures, central bank digital currencies, and restrictions on political officials’ involvement in digital asset businesses. The House previously passed its own version of the legislation last year.
What the CLARITY Act bill would do
The CLARITY Act would establish rules defining which digital assets qualify as securities and which qualify as commodities, addressing the long-running jurisdictional overlap between the SEC and CFTC.
The bill would also include protections for software developers so that illicit actions by third parties do not automatically create liability for developers. It would preserve Americans’ ability to self-custody digital assets and require digital asset exchanges, brokers, and dealers to comply with Bank Secrecy Act obligations, including anti-money laundering programs, suspicious activity reporting, and sanctions compliance.
One of the most debated sections involves stablecoin yield provisions. The May 11 version of the bill would ban rewards on passive stablecoin holdings that are “economically or functionally equivalent” to deposit interest, while allowing rewards connected to trading, transactions, or staking activities.
More than 130 amendments under review
More than 130 amendments were filed ahead of the markup session, including 44 from Sen. Elizabeth Warren (D-Mass.).
Warren proposed measures targeting political corruption in banking applications and presidential ownership interests connected to financial institutions, including proposals aimed at digital asset ventures seeking banking charters. Sen. Chris Van Hollen (D-Md.) introduced an amendment that would prohibit presidents and senior government officials from owning or promoting digital asset businesses.
Sen. Bill Hagerty (R-TN) proposed an amendment banning a central bank digital currency issued by the Federal Reserve.
Industry reaction during the vote
Several digital asset industry leaders have publicly backed the legislation as the committee vote continues.
Coinbase CEO Brian Armstrong described the legislation as a “true compromise,” saying both the crypto and banking industries made concessions during negotiations. He said the bill “could reshape how Americans interact with money and financial markets.”
Circle Internet Group CEO Jeremy Allaire called the legislation a “very good compromise” and said the company remained optimistic about its prospects despite difficult negotiations.
Ripple CEO Brad Garlinghouse said the company supports the legislation and praised the Senate Banking Committee’s leadership during the process.
What comes next
If approved by the Senate Banking Committee, the bill would later be combined with related legislation that previously passed the Senate Agriculture Committee.
UPD: The Senate banking committee voted 15:9 on May 14, largely divided by party policy lines. However, two Democratic senators (Ruben Gallego and Angela Alsobrooks) voted with all Republicans in favor of the bill.
The legislation would still require at least 60 votes to pass the full Senate, meaning bipartisan support would likely be necessary before it could return to the House for another vote. There is no fixed date yet for the next voting stage, however, most projections agree on late June-July 2026 timeline. Prediction market Polymarket currently estimates a roughly 60% probability that the legislation passes this year.
The article was updated on May 19, 2026 with voting details and predictions on full Senate voting.
