CLARITY Act Heads to Senate Committee Markup in Key Crypto Regulation Test

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The Digital Asset Market Clarity Act, also known as the CLARITY Act, has been scheduled for markup before the US Senate Committee on Banking, Housing, and Urban Affairs on Thursday, May 14.

A markup is the stage where US committee members debate a bill, propose and vote on amendments, and decide whether to advance it for further consideration. 

The CLARITY Act would create a federal market structure framework for digital assets in the United States, setting clearer boundaries between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). 

The CFTC would oversee spot and cash markets for digital commodities, while the SEC would maintain authority over investment contract assets and fundraising activity. Stablecoins would be a separate category with oversight shared between the SEC and CFTC.

The legislation passed the House of Representatives on July 17, 2025, with a strong bipartisan majority of 294 to 134. Since then, the legislation has been delayed in the Senate over disagreements such as stablecoin regulation.

One key issue is whether crypto firms should be allowed to offer rewards or yield on stablecoins. Banking groups have pushed for tighter restrictions, arguing that such products could draw deposits away from traditional savings accounts. Crypto groups argue that stablecoin reward programs should remain available under rules established by last year’s GENIUS Act.

Lawmakers are also divided over protections for decentralized finance developers and ethics provisions linked to public officials’ crypto activity. Democrats have pushed for language restricting officials from launching or promoting crypto products while in office, while Committee Chair Tim Scott has argued that such measures would need to be considered later in the legislative process.

The May 14 session marks the bill’s first formal Senate committee test after months of delays, with Committee Chair Tim Scott aiming to bring it to the Senate floor by June or July 2026, ahead of anticipated further delays before the November midterm elections.