Key Takeaways
- Senate Banking Committee announces May 14 markup session for Digital Asset Market Clarity Act of 2025
- Legislative progress resumed after January standstill caused by Coinbase’s withdrawal over stablecoin and DeFi provisions
- Senators Tillis and Alsobrooks negotiated stablecoin yield compromise announced last week
- Major banking trade organizations express reservations and request additional revisions
- Senator Gillibrand pushes for ethics rules preventing officials from profiting during regulatory tenure
The Senate Banking Committee has officially scheduled May 14 for its markup session on the Digital Asset Market Clarity Act of 2025, commonly referred to as the Clarity Act. Proceedings are set to commence at 10:30 a.m.
This markup represents a crucial milestone in the legislation’s path toward enactment. During markup sessions, committee members examine, amend, and vote on proposed legislation before advancing it to the full Senate chamber.
The legislation has experienced significant turbulence in recent months. Back in January, Coinbase CEO Brian Armstrong publicly announced the cryptocurrency exchange’s decision to withdraw support. Armstrong cited several critical issues: insufficient legal safeguards for open source software developers, prohibitions on stablecoin yield generation, and problematic decentralized finance regulations.
This withdrawal effectively brought the bill’s momentum to a halt for several months.
Last week, Senators Thom Tillis and Angela Alsobrooks unveiled compromise language addressing the contentious stablecoin yield matter. Under the revised framework, cryptocurrency firms would be prohibited from offering yield on passive stablecoin reserve holdings, while permitting rewards when stablecoins participate in active financial transactions.
The compromise drew positive reactions from Coinbase. Paul Grewal, the company’s chief legal officer, expressed enthusiasm on X, writing: “It’s on like Donkey Kong.” Faryar Shirzad, chief policy officer, characterized it as a “big step forward” and emphasized the legislation’s importance for consumer protection and maintaining crypto innovation within American borders.
Senator Cynthia Lummis, recognized as a prominent cryptocurrency advocate in the Senate, expressed support for the development, declaring on X: “Let’s pass the Clarity Act out of the Banking Committee on Thursday!”
Trade Associations Voice Remaining Issues
Universal support remains elusive. A joint letter from multiple banking industry organizations — including the American Bankers Association, the Bank Policy Institute, and the Independent Community Bankers of America — indicated that “additional work is needed” to refine the bill’s provisions. These groups submitted detailed proposed amendments to last week’s compromise language.
Nevertheless, the scheduled markup session indicates Senate leadership’s readiness to proceed with the legislation in its present form.
Ethics Amendment Still Under Discussion
Senator Kirsten Gillibrand, a consistent advocate for the cryptocurrency sector, has introduced a distinct concern. She seeks to incorporate an ethics provision preventing senior government officials from financially benefiting from the crypto industry during their regulatory service.
Research commissioned by CoinDesk revealed that 73% of registered American voters favor such restrictions.
Nonetheless, this provision may not appear in the Banking Committee’s version of the legislation. Following the Banking Committee’s markup, the Senate must reconcile its version with the Agriculture Committee’s version before proceeding to a full Senate vote.
Kara Calvert, Coinbase’s vice president of US policy, had anticipated the markup timing during remarks at the Consensus 2026 conference just days ago. She also highlighted that the bill requires a minimum of 60 votes and bipartisan cooperation to secure passage.
