Senate Banking Panel to Mark Up CLARITY Act May 14

Senate Banking Committee chair Tim Scott confirmed the committee will mark up the CLARITY Act on May 14, moving forward a bill intended to clarify federal rules for cryptocurrency firms.

The CLARITY Act was introduced in July 2025. Progress stalled in January after Coinbase withdrew its backing, and the scheduled vote next week resumes a process that has been closely watched by lawmakers and industry participants.

Coinbase withdrew support citing several concerns, including the absence of legal protections for open source software contributors, a proposed ban on yield for stablecoins, and provisions affecting decentralized finance protocols.

Coinbase executives reacted to the markup announcement on X. Chief Legal Officer Paul Grewel posted, “It’s on like Donkey Kong.” Chief Policy Officer Faryar Shirzad called the scheduled vote a “big step forward” for protecting consumers and supporting innovation in the United States.

Senator Cynthia Lummis urged committee members to advance the bill, writing on X, “Let’s pass the Clarity Act out of the Banking Committee on Thursday!” Kara Calvert, Coinbase’s vice president of U.S. policy, told attendees at a recent conference she expected a markup and said the bill will need at least 60 Senate votes and bipartisan backing to become law.

The committee markup allows members to propose amendments, debate the bill’s language and vote on whether to report the measure to the full Senate. If the committee reports the bill, supporters will need to secure a supermajority on the Senate floor to overcome procedural hurdles.

Supporters of the legislation have pointed to regulatory uncertainty under current Securities and Exchange Commission leadership and linked that uncertainty to reports of some firms considering relocating operations overseas. Opponents and some legal experts have questioned specific provisions and their potential effects on developers, stablecoin markets and DeFi platforms.

Lawmakers and industry observers will watch the committee proceeding for possible changes to contentious elements, including the treatment of stablecoin yields, protections for open source contributors, and rules affecting decentralized finance platforms. The outcome of the May 14 markup will determine whether the bill moves to the full Senate for further consideration.