Senate Banking Committee Sets May 14 Session to Take Up Digital Asset Market Clarity Act

The U.S. Senate Banking Committee plans to take up the Digital Asset Market Clarity Act next week, a key step for long-awaited legislation aimed at defining federal oversight of cryptocurrencies. Committee Chairman Tim Scott said the panel will hold an executive session on May 14 at 10:30 a.m. at the Dirksen Senate Office Building in Washington, D.C. The agenda is expected to include consideration of the Clarity Act, which would spell out when crypto tokens are treated as securities, commodities or other digital assets, and would split regulatory jurisdiction between the Securities and Exchange Commission and the Commodity Futures Trading Commission. According to reports, draft bill text has already been shared with select industry participants ahead of a possible committee vote. Parts of the language remain in flux, with further revisions expected to incorporate priorities from Democratic offices. Markup Brings Market-Structure Bill Back to the Fore The markup would move the Senate closer to advancing its own version of a bill that the crypto industry has prioritized, arguing that fragmented federal rules have slowed growth and left firms uncertain about compliance. The House approved its version in July last year by a 294-134 bipartisan vote. The Senate must clear its own version before the bill can proceed toward final passage and any reconciliation with the House text. Committee members are expected to vote on the base text and any amendments. If the Senate Banking Committee approves its portion, it would be combined with the Senate Agriculture Committee's section to form a single Senate version ahead of a floor vote. Senator Cynthia Lummis urged colleagues to advance the bill, writing on X that the Clarity Act should clear the Banking Committee on Thursday. The committee push comes as the White House has urged Congress to move broader crypto legislation quickly. Previous reporting said the administration had targeted July 4 as a preferred deadline, though several policy disputes remain unresolved. Industry participants are watching the days leading up to the May 14 session for signals on whether final text is ready, whether amendments will be offered, and whether bipartisan support is sufficient to move the bill forward. Stablecoin Rewards Fight Remains a Flashpoint A central dispute involves stablecoin rewards. A compromise backed by Republican Senator Thom Tillis and Democratic Senator Angela Alsobrooks would bar customer rewards on idle holdings of dollar-backed stablecoins, citing similarities to bank deposits. The language would still allow rewards tied to other stablecoin uses, such as payment activity. Crypto firms argue that broader limits on third-party rewards would reduce competition and constrain product design. Banking trade groups say the compromise still leaves room for programs that could resemble yield. Groups including the Bank Policy Institute, American Bankers Association, Independent Community Bankers of America, Financial Services Forum, National Bankers Association, and Consumer Bankers Association reportedly sent proposed edits to Senate Banking leadership. Banks warn that stablecoin yield could draw deposits away from the insured banking system and raise financial stability risks. Crypto companies counter that banks are trying to curb payments innovation and protect deposit franchises. A Senate aide cited in reports said lawmakers have already shifted attention to other unresolved issues, including ethics provisions, suggesting banking groups may have limited leverage to reopen the yield debate before markup. Polling Points to Bipartisan Voter Backing New HarrisX polling found 52% of registered voters support the Clarity Act after receiving a neutral description, while 11% oppose it. The survey measured voter sentiment, not a senator-by-senator whip count. The poll showed net support across major political groups: Democrats at +48, Republicans at +43 and Independents at +32. Coinbase CEO Brian Armstrong pointed to the results as evidence of cross-party momentum, writing on X: "Passing the CLARITY Act is a bipartisan, and winning, issue." HarrisX also found that 70% of voters believe the U.S. should have already enacted crypto legislation. Another 62% said it is important for the country to set global rules for digital finance, and 60% favored clear federal legislation over case-by-case enforcement. Political hurdles remain. Many Democrats say the bill needs stronger anti-money-laundering requirements and tighter ethics rules to prevent public officials from profiting from crypto ventures. The legislation would need at least seven Democratic votes in the full Senate to pass, making final language on stablecoins, ethics, DeFi oversight and market oversight critical to its path. Prediction market Polymarket recently put the odds at 75% that the Clarity Act could become law this year, though timing in Congress remains uncertain. The crypto industry is pressing for passage ahead of the November midterm elections, when control of the House could shift.