Senate Banking Committee Accelerates Vote on Crypto CLARITY Act to May 14

The CLARITY Act, a landmark piece of crypto legislation, is advancing faster than anticipated. The Senate Banking Committee has scheduled a vote for May 14, with draft text already circulating among key industry players. Committee Chairman Tim Scott aims to finalize markup before the Memorial Day recess, targeting a presidential signature by July 4—America's 250th anniversary.

The bill, which passed the House in July 2025 with bipartisan support, faced delays in the Senate over stablecoin yield disputes. A breakthrough came on May 1 when Senators Thom Tillis and Angela Alsobrooks brokered a compromise. The deal prohibits passive yield on stablecoins like USDC and USDT but permits activity-based rewards tied to transactions or platform usage.

The CLARITY Act seeks to resolve years of regulatory ambiguity by delineating clear jurisdictional boundaries between the SEC and CFTC for digital assets. This framework could provide much-needed clarity for the crypto market, potentially catalyzing institutional adoption and mainstream integration.