CLARITY ACT Updates: Passed Senate 15-9 Vote

Chairman Tim Scott gaveled in the executive session in the Dirksen Senate Office Building at 10:30 AM ET Thursday. The 24-member committee will debate and vote on more than 130 filed amendments before taking a final vote on whether to advance the 309-page bill to the full Senate floor. A simple majority decides each amendment; Republicans hold a 13-11 majority, and Scott has signaled all 13 will vote to advance after Senator John Kennedy’s Wednesday commitment. The Reed-Smith joint amendment is the most consequential vote of the day. It would replace the negotiated stablecoin rewards definition with banking-industry-preferred language treating rewards as “substantially similar” to deposit interest, and per Punchbowl News, it is engineered to force every senator on the committee to make a binary public choice between the crypto industry and the banking industry. The American Bankers Association has sent more than 8,000 letters to Senate offices since Friday May 9 urging amendments to gut the Tillis-Alsobrooks compromise. The conflict-of-interest provision Democrats have demanded falls outside the Banking Committee’s jurisdiction and is not on the agenda. Senators Cynthia Lummis (R-WY) and Bernie Moreno (R-OH) have warned that failure to clear committee before the May 21 Memorial Day recess could push the next viable legislative window past the 2026 midterm elections. Final committee vote pending.

Kennedy, the last undecided Republican on the Banking Committee, said publicly Wednesday he will support the CLARITY Act in Thursday’s markup. He struck a deal with Chairman Tim Scott to add a fiduciary duty provision for crypto industry participants and to attach the Build Now Act, a community development grant housing bill Kennedy co-sponsored with Senator Elizabeth Warren, as Section 904 of the package. The Banking panel splits 13 Republicans to 11 Democrats; every GOP vote was required to advance the bill on a party-line markup, and Kennedy’s was the only remaining open question after Senator Scott set “the red zone” threshold at all 13 Republicans. Polymarket odds of CLARITY Act passage in 2026 moved from the low 60s to 73% on the commitment.

American Bankers Association members sent more than 8,000 letters to Senate offices between Friday May 9 and Wednesday May 13, according to a source familiar with the effort cited by Crypto in America host Eleanor Terrett and confirmed by The Block and CoinDesk reporting. The campaign focuses specifically on the Tillis-Alsobrooks stablecoin yield compromise, urging senators to support amendments — chiefly the Reed-Smith proposal — that would replace the negotiated rewards language with banking-industry-preferred wording treating activity-based rewards as “substantially similar” to deposit interest. State bank organizations filed separate letters of their own. Chairman Tim Scott did not move the markup date in response.

Senator Elizabeth Warren filed 44 amendments, including proposals to bar the Federal Reserve from granting master accounts to crypto firms (a provision that would affect Ripple, Circle, Anchorage Digital, Custodia Bank, and Kraken), prohibit federal approval of banking applications from institutions tied to the president or members of Congress and their families (targeting World Liberty Financial’s bank charter application), require release of federal banking records related to Jeffrey Epstein and alleged co-conspirators within 90 days of passage, and remove the grandfather clause that would automatically classify ETF-backed tokens including XRP, Solana, Litecoin, Hedera, Dogecoin, and Chainlink as digital commodities. Senator Jack Reed filed nearly 20 amendments, including language that would replace the negotiated stablecoin rewards definition with banking-industry-preferred wording, a proposal to eliminate the Blockchain Regulatory Certainty Act that shields non-custodial software developers from criminal prosecution, and a ban on crypto as legal tender for tax payments. Senator Bill Hagerty (R-TN) filed an amendment banning the Federal Reserve from issuing a central bank digital currency. Senator Andy Kim (D-NJ) proposed reinstating the National Cryptocurrency Enforcement Team disbanded in 2025. Senator Tina Smith (D-MN) filed language prohibiting federal financial assistance to failing crypto firms. The DeFi Education Fund flagged amendments from Senators Catherine Cortez Masto, Kim, Chris Van Hollen, Warren, and Reed as anti-DeFi, targeting non-controlling software developer protections, DeFi front-end interfaces, and tokenization provisions.

Chairman Tim Scott’s committee published the latest version of the CLARITY Act just past midnight Tuesday, two days before the scheduled markup. The text retains the Tillis-Alsobrooks compromise prohibiting interest or yield on idle stablecoin balances while permitting activity-based rewards tied to wallet use, payments, liquidity provision, staking, and loyalty programs. The conflict-of-interest section that Democrats including Senator Kirsten Gillibrand have demanded was not included; Banking Committee staff confirmed the provision falls outside the panel’s jurisdiction and would have to be added at a later stage. Scott called the text “a strong compromise and a result of hard work from all parties involved.” White House crypto director David Sacks framed the release as “a monumental step in making the U.S. the Crypto Capital of the World.” Coinbase CEO Brian Armstrong called the bill “strong.”

The American Bankers Association, Bank Policy Institute, and Independent Community Bankers of America jointly wrote Senate Banking Chair Tim Scott and Ranking Member Elizabeth Warren asking for “important technical refinements” to Section 404 of the bill. The letter thanked Sens. Tillis and Alsobrooks for their efforts but argued the current text leaves room for “interest-like payments” structured as activity rewards, balance-tenure incentives, or wallet-holding promotions. The groups warned that yield-earning stablecoins could reduce consumer, small-business, and farm loans “by one-fifth or more.” Banking Committee Chair Tim Scott did not move the markup date in response. As of press time, no procedural motion has been filed to delay or recess the May 14 session.

Senate Banking Committee Chair Tim Scott (R-SC) noticed an executive session on the Digital Asset Market Clarity Act of 2025 for Thursday, May 14 at 10:30 a.m. in the Dirksen Senate Office Building. The notice marks the Senate’s first formal committee vote on the bill since the January postponement and clears the procedural hurdle Scott had previously named on Fox Business — a final text sitting in committee for at least 48 hours. Coinbase CEO Brian Armstrong posted that the markup made CLARITY “a bipartisan, and winning, issue,” citing HarrisX polling showing 52% voter support versus 11% opposition, with net positive support across Democrats (+48), Republicans (+43), and independents (+32). The White House’s stated target remains a signed bill by July 4.

The ABA, Bank Policy Institute, Consumer Bankers Association, Financial Services Forum, and Independent Community Bankers of America issued a joint statement calling the Tillis-Alsobrooks compromise language insufficient, arguing it falls short of fully prohibiting yield and interest on stablecoins. Sens. Cynthia Lummis and Thom Tillis publicly defended the text within hours. Tillis wrote that banking interests had “had a seat at the table” for months and closed with “Some in the banking industry may not want either of these things to happen, and we respectfully agree to disagree.” Galaxy Digital research head Alex Thorn put committee passage odds at “roughly 50-50, and possibly lower” in a research note that day. Polymarket odds slipped briefly to 47% before recovering on the markup announcement.

Sens. Thom Tillis (R-NC) and Angela Alsobrooks (D-MD) released the final text of their stablecoin yield compromise for Section 404 of the CLARITY Act. The language bars crypto firms from paying interest or yield on stablecoin balances “economically or functionally equivalent” to bank deposits, while preserving rewards tied to “bona fide activities” such as payments, transfers, and trading. The text effectively forces a shift from buy-and-hold yield models to buy-and-use reward structures. Coinbase CEO Brian Armstrong posted “Mark it up” on X within hours. Circle CSO Dante Disparte and Blockchain Association CEO Summer Mersinger endorsed the deal. The Crypto Council for Innovation flagged that the prohibition reaches further than the GENIUS Act but urged the committee to advance the bill anyway. Polymarket odds jumped from 46% to 55% in a single day on the release. [Via CoinDesk](https://www.coindesk.com/policy/2026/05/01/clarity-act-text-lets-crypto-firms-offer-stablecoin-rewards-while-shielding-bank-yield)

Senate Banking Committee Chair Tim Scott (R-SC) said his committee is nearing bipartisan consensus on the CLARITY Act and is targeting a May markup after securing commitments from all 13 Republican members. Polymarket odds for 2026 passage repriced from roughly 46% to 67% over the next 24 hours, the single largest one-day move on the contract since its January launch. Gamma API data recorded a one-day price change of 0.205 against approximately $596,000 in cumulative trading volume on the market.

Sen. Thom Tillis told reporters that work on the CLARITY Act has “addressed a lot of the concerns” of bank lobbyists defending interest-bearing deposit turf, and that he would encourage Chair Scott to move forward with the markup. “I’m going to encourage the chair to move forward with the markup,” Tillis said. Digital Chamber CEO Cody Carbone responded that “there is more momentum than ever for a markup in May.” Sen. Chuck Grassley separately raised whether DeFi developer protections in the bill should run through the Judiciary Committee — a potential procedural sidetrack that crypto advocates flagged as a fresh delay risk. [Via CoinDesk](https://www.coindesk.com/news-analysis/2026/04/29/u-s-senator-holding-cards-on-clarity-act-s-next-move-says-it-s-ready-to-get-to-hearing)

The Digital Chamber sent a letter to Senate leaders urging them to move market-structure legislation out of private negotiation and into a formal markup stage, joining Stand With Crypto’s parallel petition drive. The letter framed continued delay as a competitiveness risk for US-based developers and platforms.

Coinbase CEO Brian Armstrong publicly endorsed the CLARITY Act on X, responding to Treasury Secretary Bessent’s Wall Street Journal op-ed: “We agree. Thank you @SecScottBessent for saying it. It’s time to pass the Clarity Act. Grateful for all the bipartisan work among Senators and staff over the past several months to make this a strong bill.” The reversal ended Coinbase’s standing opposition, which had twice contributed to markup delays earlier in 2026 over the bill’s treatment of the company’s $1.35B annual USDC rewards revenue line. Armstrong separately told CNBC he assigned 90% odds of CLARITY Act passage by end of April. Polymarket briefly spiked to 90% on the back of those remarks before settling lower. With no major industry holdout remaining, the bill entered the Senate’s return-from-recess week without a public crypto-side objection for the first time in 2026.

Treasury Secretary Scott Bessent published a Wall Street Journal op-ed titled “Digital Asset Rules Need Clarity,” framing the bill as a national security priority and citing the migration of blockchain developers and crypto companies to Singapore and Abu Dhabi as a consequence of sustained US regulatory ambiguity. Bessent posted: “It is time for @BankingGOP to hold a markup and send the CLARITY Act to President Trump’s desk. Senate time is precious, and now is the time to act.” SEC Chair Paul Atkins backed the call hours later, posting that “Project Crypto is designed so once Congress acts, @SECGov & @CFTC are ready to implement the CLARITY Act.” Former White House crypto czar David Sacks and Sen. Cynthia Lummis also publicly urged action the same day.

The White House Council of Economic Advisers published a 21-page analysis finding that a full ban on stablecoin yield would increase bank lending by approximately $2.1 billion — a 0.02% improvement against the total US lending base. The report substantially undercut the banking lobby’s deposit-flight argument and reset the analytical baseline heading into the April 13 Senate return-from-recess week.

Speaking at the Vanderbilt University Digital Assets and Emerging Tech Policy Summit, Sen. Bill Hagerty (R-TN) said the bill’s proponents could move it through Senate Banking Committee during the work period beginning April 13 and out to the full Senate before month’s end. “There are several issues still outstanding — I think none of them are insurmountable — and I believe in April we’ll have it out of the banking committee,” Hagerty said, adding that “there’s still a lot more work to do.” Sen. Lummis separately confirmed a late-April markup target. Analysts cautioned that failure to advance the bill from committee before May could effectively push it off the calendar until after the November 2026 midterms.

David Sacks confirmed that his 130-day term as White House AI and crypto czar had expired. The administration announced it would not appoint a replacement. The CLARITY Act’s most senior White House institutional advocate exits the process at the most critical stretch of the bill’s Senate timeline. Separately, the Senate held its last working session before Easter recess. A revised stablecoin yield draft had been expected before the pro forma period began — it was not published. A Tillis spokesperson confirmed updated text was expected during the recess period following additional conversations with industry and banking stakeholders.

President Trump named Marc Andreessen (a16z) and Fred Ehrsam (Paradigm) to the President’s Council of Advisors on Science and Technology (PCAST). Both publicly backed the CLARITY Act in January when Coinbase’s withdrawal threatened to collapse the bill. Neither conditioned their support on stablecoin yield language. The appointments signal where the White House’s crypto policy relationships sit heading into the Senate Banking Committee markup.

Crypto industry leaders attended a closed-door session on Capitol Hill to review the formal draft language from the Tillis-Alsobrooks stablecoin yield compromise. Bank representatives reviewed the same text the following day. The draft bans platforms from offering yield — directly, indirectly, or through any arrangement economically equivalent to bank interest — on stablecoin balances, while permitting activity-based rewards tied to payments, transfers, or platform use. The SEC, CFTC, and Treasury would have 12 months post-enactment to define permissible rewards programs. Coinbase privately told Senate staff it could not accept the March 23 draft. Stripe also objected. The text landed closer to the bank position than the White House’s earlier activity-based compromise framing.

Senate Republicans held a closed meeting attended by White House Crypto Council director Patrick Witt. Sen. Lummis told reporters stablecoin yield negotiations are 99% resolved and the digital asset portions of the bill are in a good place — remaining friction is political, not technical. Senate Banking Republicans are now discussing attaching community bank deregulatory provisions to the CLARITY Act in exchange for the House accepting the Senate’s housing package, drawing the bill into a broader legislative trade. Sen. Moreno warned that if the bill does not advance by May, digital asset legislation may not move forward for years.

Senate Banking Committee Chairman Tim Scott said at the DC Blockchain Summit that “big momentum is finally on our side” and expected a first proposal in his hands by end of week. House Republican Dusty Johnson said he didn’t understand the Senate’s pace and warned “we really are running out of time,” noting that 3–4 Senate Democrats still need to commit before a deal can close.

The SEC and CFTC issued a joint 68-page interpretation explicitly naming 16 crypto assets as digital commodities and classifying staking, mining, and airdrops outside securities law. SEC Chair Atkins and Republican commissioners framed it as interim policy, writing: “Only Congress can rewrite the law, and we stand ready to work with CFTC Chairman Michael Selig to implement the CLARITY Act.”

Senators, crypto advocates, and bankers reached broad agreement on keeping rewards away from static stablecoin holdings that resemble bank accounts, though the American Bankers Association continued lobbying to close any yield loophole. Senators Alsobrooks and Tillis were reported to be working on compromise language. Unresolved issues beyond stablecoin yield include DeFi treatment, Democratic demands for CFTC/SEC appointments, and calls to ban senior government officials — including Trump — from profiting on personal crypto business ties.

Trump posted on Truth Social that he would not sign any legislation until the SAVE America Act — a voting reform bill requiring proof of citizenship for voter registration — cleared Congress in its strongest form. The post made no mention of crypto but placed the CLARITY Act further back in the Senate’s legislative queue.

President Trump posted on Truth Social accusing banks of holding market structure legislation “hostage” over their opposition to stablecoin yield provisions, and urged Congress to pass the CLARITY Act without delay. The post came as White House-facilitated negotiations between banking and crypto representatives continued, with draft language reportedly still circulating among lawmakers. Cardano founder Charles Hoskinson separately called the bill a “horrific, trash bill” that could push future crypto founders offshore. Via DeFi Rate

JPMorgan analysts led by Nikolaos Panigirtzoglou published a research note describing CLARITY Act passage by midyear as a “positive catalyst” for digital assets, citing regulatory clarity, institutional scaling, and tokenization growth as key drivers. Separately, Polymarket priced 2026 signing odds at 61%—up roughly down 12 points from last month. Via Yahoo Finance

The White House’s self-imposed March 1 deadline for banks and crypto firms to resolve stablecoin yield language expired without a public compromise. Crypto stakeholders insisted negotiations remain active, while a banking source said both sides are still exchanging legislative text. Senate Banking Committee is now eyeing a mid-to-late March markup window as a second attempt. Via Crypto In America

Senate Banking Committee oversight hearing with OCC, FDIC, and Fed officials dominated by stablecoin and CLARITY Act discussions. Chairman Tim Scott noted deposit flight fears “do not seem to be realized, whatsoever,” citing recent deposit increases. Sen. Warren pressed OCC Comptroller Gould on World Liberty Financial’s bank charter application. Via CoinDesk

Representatives Fitzgerald, Cline, and Lofgren introduced the Promoting Innovation in Blockchain Development Act of 2026, shielding software developers who don’t control customer funds from prosecution under money transmission laws. The Blockchain Association simultaneously sent 21 leaders from 18 companies to meet with 24 Senate offices on DeFi provisions in the CLARITY Act draft. Via CoinGape

OCC issued proposed rules implementing the GENIUS Act with a 60-day comment period. The proposal would restrict stablecoin-as-a-service platforms and presumes third-party yield arrangements violate the Act’s ban on issuer interest payments, casting doubt on Coinbase’s stablecoin rewards model and complicating CLARITY Act negotiations. Via OCC

Senate Democrats met to discuss advancing the crypto market structure bill ahead of the March 1 deadline. Separately, a16z’s Marc Andreessen and Chris Dixon briefed Senate Republicans, urging passage of the CLARITY Act. Polymarket odds recovered to 69% after dropping to as low as 42% earlier in the week. Via The Block

Patrick Witt told ETHDenver attendees that the gap between banks and crypto firms “shrunk considerably,” proposing draft language banning yield on idle stablecoin balances while permitting activity-based rewards. Violations would carry penalties up to $500,000/day. Witt said resolving rewards could trigger a “domino effect” accelerating Senate action before the March 1 deadline. Via Ledger Insights

Following the Feb 19 meeting, White House crypto adviser Patrick Witt outlined draft text allowing stablecoin rewards only for “activities or transactions (not balances).” The White House explicitly set March 1 as the deadline for reaching compromise language before Senate Banking Committee action. Via Disruption Banking

Third White House bank/crypto meeting reported progress but no final deal; participants described discussions as constructive, with draft language work continuing on stablecoin rewards.

Brian Armstrong publicly indicated progress in CLARITY/stablecoin-yield discussions, suggesting movement toward compromise while core policy disagreements remain unresolved.

Treasury Secretary Bessent calls for rapid passage, signals spring signing target. Says the 2026 midterms create urgency. Separately, Patrick Witt (crypto council director) tells Yahoo Finance: “I believe we’ll get this done.”

Atkins tells Senate Banking Committee the SEC can write interim crypto rules but they’re vulnerable to reversal without statutory backing. References “our now-joint Project Crypto” SEC-CFTC collaboration. Sen. Mark Warner (D-VA) signals Democrats haven’t abandoned talks.

Banks arrive with a “principles” document calling for a complete ban on stablecoin yield. No compromise reached. BofA CEO Moynihan reportedly warns trillions could migrate from bank deposits to yield-bearing stablecoins. White House sets end-of-Feb deadline for a deal.

Treasury Secretary Bessent tells FSOC that crypto firms blocking legislation are “nihilists” who should “move to El Salvador.” Strongest White House rhetoric yet against industry opposition.

Party-line vote. First time a crypto market structure bill clears a Senate committee. All Democratic amendments (ethics, DeFi, AML) fail 12-11. Bill text unchanged post-markup.

Armstrong clashes with JPMorgan CEO Jamie Dimon and BofA CEO Brian Moynihan at WEF. Dimon accuses Armstrong of “lying on television” about banks sabotaging crypto legislation. Industry split deepens.

Chairman Boozman releases the “Digital Commodity Intermediaries Act” (S. 3755). Republican-only version — bipartisan support collapses after Booker walks away. Focuses on CFTC intermediary registration.

CEO Brian Armstrong posts on X: “There are too many issues.” Objects to stablecoin yield restrictions, tokenized equity limits, DeFi surveillance provisions, and weakened CFTC authority. Senate Banking Committee delays Jan 15 markup within hours.

New draft introduces stablecoin yield restrictions, expanded BSA/AML provisions, and DeFi protocol reporting requirements. Sparks immediate industry backlash.

Sens. John Boozman (R-AR) and Cory Booker (D-NJ) release bipartisan discussion draft of the Senate Ag Committee’s version.

H.R. 3633 formally received and referred to Committee on Banking, Housing, and Urban Affairs.

Senate Banking Committee releases 182-page discussion draft building on the CLARITY Act framework.

Sens. Tim Scott, Cynthia Lummis, Bill Hagerty, and Bernie Moreno release Senate Banking Committee’s version for public review. Scott calls the House bill a “strong template.”

Passes under structured rule (H. Res. 580). Bipartisan support with significant Democratic crossover. Same week the GENIUS Act (stablecoin bill) passes both chambers.

House Financial Services Committee (32-19) and Agriculture Committee (47-6) both advance the bill. Agriculture Committee passes with strong bipartisan support. Reports filed June 23 (H. Rept. 119-168, Parts I and II).

House Financial Services Committee Chairman French Hill introduces H.R. 3633. Referred to Committee on Financial Services and Committee on Agriculture. 8 original cosponsors; 21 total (14 R, 7 D).