The Senate Banking Committee has scheduled a markup hearing for the Digital Asset Market Clarity (CLARITY) Act on 14 May 2026, 10:30 AM EST, advancing the most significant cryptocurrency legislation in US history after months of delays, lobbying battles, and procedural setbacks.
So, what comes next? A successful May 14 markup would send the bill toward reconciliation between the Senate Banking and Agriculture Committee versions, which must then be aligned with the House-passed text before any presidential signature. Competing floor priorities mean the timeline remains subject to change, but industry groups and key sponsors are pushing for Senate action before the summer recess.
Here is a quick timeline
The hearing caps a protracted legislative journey for HR 3633, which passed the House in July 2025, by a 294-134 bipartisan vote, with every Republican and 78 Democrats in support. Two earlier Senate markup attempts were canceled over disputes, primarily around stablecoin yield restrictions.
A breakthrough arrived on 20 March 2026, when Senators Thom Tillis (R-NC) and Angela Alsobrooks (D-MD), with White House involvement, struck a compromise that bans passive yield on stablecoin holdings while permitting activity-based rewards tied to payments, transfers, or platform usage.
Patrick Witt, Executive Director of the President's Council of Advisors on Digital Assets, called the deal "durable" and confirmed that additional sticking points had been resolved following David Sacks's departure from the administration in March.
Coinbase, which initially opposed the stablecoin language on March 23, reversed course by April 10 after Treasury Secretary Scott Bessent publicly urged the markup to proceed.
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What is the CLARITY Act?
At its core, the CLARITY Act establishes a legal framework to resolve the longstanding jurisdictional conflict between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) over digital assets.
The bill introduces a "mature blockchain test," a decentralization threshold that determines when a token transitions from SEC oversight as an investment contract to CFTC regulation as a "digital commodity." Spot and cash markets for digital commodities would fall under exclusive CFTC jurisdiction, while the SEC retains authority over digital asset fundraising.
The Senate's expanded version of the bill spans nine titles and includes:
- DeFi (decentralized finance) protections for protocols and users
- The Blockchain Regulatory Certainty Act (BRCA), providing safe harbors for software developers
- Bankruptcy protections for customer assets held by crypto firms
- Anti-money laundering (AML) registration requirements for intermediaries
- Shared SEC-CFTC oversight of stablecoins
- Provisions governing crypto-related banking activities
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