U.S. Senate Banking Committee advances Clarity Act markup on crypto market structure

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Senate crypto Clarity Act markup

Highlights

Senate Banking Committee is set for a final vote Thursday on the Clarity Act, following compromise on stablecoin yield provisions.
Debate continues over adding ethics restrictions barring senior officials from crypto business ties, amid 73% public support according to a CoinDesk survey.
Banking industry claims the bill still favors crypto firms, with state groups and bankers delivering about 8,000 protest letters to senators.

Markup hearing opens path for Senate vote

As reported by CoinDesk, the 24 members of the Senate Banking Committee are debating proposed changes to the bill text released shortly after midnight on Tuesday morning, with a final committee vote expected at the end of Thursday's hearing.

The hearing is a significant procedural step, but it does not complete the legislative process. If the committee approves the measure, the bill still needs to be combined with the Senate Agriculture Committee's version, pass a Senate floor vote, be reconciled with the House of Representatives' version and win approval in that chamber before reaching the president's desk.

Lawmakers move forward after reaching a compromise on stablecoin yield, an issue negotiated by Senators Thom Tillis and Angela Alsobrooks. One unresolved question is whether the legislation will include an ethics provision that bars senior government officials from maintaining business ties to the crypto industry.

Banking industry pressure shapes broader debate

The push for an ethics restriction is tied to scrutiny around President Donald Trump and his family's links to World Liberty Financial and other cryptocurrency businesses. CoinDesk also cited a survey it commissioned showing 73% of Americans believe senior government officials should not have business ties to the industry.

Even with the stablecoin yield compromise in place, the banking industry argues the provisions still favor crypto companies too heavily. State banking groups have sent letters to lawmakers, and bankers have delivered about 8,000 letters to senators, according to a source familiar with the matter.

The outcome of the markup may help determine whether Congress can move a comprehensive digital asset market structure bill this year. Thursday's debate therefore carries implications not only for crypto firms and banks, but also for the broader U.S. regulatory framework for digital assets.

Our earlier coverage of Senators Elizabeth Warren and Jack Reed focused on their call for federal agencies to investigate World Liberty Financial over potential sanctions-compliance and counter-illicit-finance failures. The lawmakers urged the Treasury and Justice departments to review whether the Trump family-backed crypto firm adequately vetted partners and users, setting a May 26, 2026 deadline for written responses on possible enforcement considerations.

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