Key Highlights
- May 14 markup hearing confirmed for the Digital Asset Market Clarity Act by Senate Banking Committee
- Progress resumed after January standstill caused by Coinbase ending its backing over stablecoin yield restrictions and DeFi provisions
- Senators Tillis and Alsobrooks reached a stablecoin yield agreement last week
- Financial industry organizations maintain reservations and request further refinements to legislative text
- Senator Gillibrand advocates for ethics language to prevent government officials from gaining financially through crypto interests
The Senate Banking Committee has confirmed May 14 at 10:30 a.m. as the scheduled time for conducting a markup hearing on the Digital Asset Market Clarity Act of 2025, commonly referred to as the Clarity Act.
This markup represents a crucial milestone in the legislative pathway for the bill. During this process, committee members will examine and cast votes on the proposed legislation ahead of potential full Senate consideration.
The legislation encountered significant obstacles during the early part of the year. January saw Coinbase CEO Brian Armstrong declare the platform’s withdrawal of support. Armstrong cited multiple issues including inadequate safeguards for open source software creators, prohibitions on stablecoin yield offerings, and problematic decentralized finance regulations.
The withdrawal created a months-long freeze in legislative momentum.
Senators Thom Tillis and Angela Alsobrooks introduced compromise language last week addressing the contentious stablecoin yield matter. Under the proposed solution, digital asset firms would face restrictions on providing yield from static stablecoin reserve deposits, while maintaining the ability to offer rewards when stablecoins participate in dynamic financial operations.
Coinbase executives expressed support for the development. Chief legal officer Paul Grewal took to X with the statement: “It’s on like Donkey Kong.” Chief policy officer Faryar Shirzad characterized the agreement as a “big step forward” and emphasized the legislation’s importance for consumer protection and maintaining American leadership in digital asset innovation.
Senator Cynthia Lummis, recognized for her cryptocurrency advocacy, endorsed the advancement, declaring on X: “Let’s pass the Clarity Act out of the Banking Committee on Thursday!”
Financial Industry Groups Express Reservations
Universal support remains elusive. Multiple banking trade organizations — including the American Bankers Association, the Bank Policy Institute, and the Independent Community Bankers of America — collaborated on a letter stating “additional work is needed” regarding the bill’s terminology. These groups provided detailed modification requests addressing the compromise language from last week.
The decision to proceed with the markup hearing indicates Senate leadership’s determination to advance the legislation in its present form, notwithstanding these concerns.
Ethics Language Remains Under Discussion
Senator Kirsten Gillibrand, who has maintained long-term support for cryptocurrency innovation, has introduced another consideration. She advocates for incorporating ethics language designed to prevent high-ranking government officials from obtaining financial benefits from the crypto sector while simultaneously overseeing its regulation.
CoinDesk-commissioned polling data revealed that 73% of registered American voters favor such restrictions.
This particular provision may remain absent from the Banking Committee’s approved version. Following the committee’s markup completion, reconciliation between the Senate Banking Committee’s draft and the Senate Agriculture Committee’s version must occur before full Senate floor consideration.
Kara Calvert, Coinbase’s vice president of US policy, anticipated the markup timing during remarks at the Consensus 2026 conference earlier this week. Calvert emphasized the measure will require a minimum of 60 votes alongside bipartisan backing to secure passage.
