Senate Releases Final Draft of CLARITY Act Ahead of May 14 Markup

The Senate Banking Committee unveiled updated text of the CLARITY Act on May 12, setting the stage for a pivotal May 14 markup session. The legislation aims to reshape the regulatory landscape for digital assets, introducing new rules for intermediaries and clarifying treatment for network tokens. Federal market regulators would gain expanded oversight, while banks could see a clearer path to offering crypto services.

Decentralized finance developers retain key protections, but the bill imposes restrictions on yield-bearing stablecoin products—a direct response to concerns about shadow banking risks. The compromise text reflects months of bipartisan negotiations, though unresolved Democratic objections regarding ethics provisions linger.

Senator Thom Tillis framed the bill as a necessary step for US innovation leadership, suggesting potential White House approval by July 4. Market participants now await committee votes that could propel the legislation toward floor debate.