Senate Circulates CLARITY Act Draft Ahead of May 8 Markup

The Senate Banking Committee circulated draft text of the CLARITY Act to select industry members ahead of a possible markup on May 8. Several bracketed provisions remain unresolved, including rules on stablecoin rewards and ethics restrictions.

Industry reviewers described the overall response as generally positive, but the draft still contains disputed bracketed language. Committee leaders expect further edits from Democratic offices as they prepare for a potential vote.

Negotiators advanced compromise language from Senators Thom Tillis and Angela Alsobrooks on stablecoin yields. The proposal would ban passive yield for simply holding stablecoins while allowing activity-based rewards tied to transactions, trading or platform use.

A separate dispute centers on ethics rules for senior officials. Senator Kirsten Gillibrand will not back the bill unless it includes provisions that bar senior government officials from profiting from crypto assets.

Lawmakers are also debating how to define jurisdiction between the Securities and Exchange Commission and the Commodity Futures Trading Commission, broker reporting requirements for crypto transactions, and whether tax rules should address crypto wash-sale practices.

Pressure to move the bill rose after the House passed the Digital Asset Market Clarity Act in July 2025. Patrick Witt, executive director of the President’s Council of Advisors for Digital Assets, told negotiators the White House hopes to see passage by July 4, adding urgency before election-year scheduling could slow action.

Senator Cynthia Lummis urged swift action: “I have spent years in the Senate fighting for American leadership in digital assets, and that means finishing what we’ve started with the CLARITY Act. Let’s get this done.” Industry officials who reviewed the draft said they expect additional edits from Democratic offices before any markup.

A HarrisX poll of 2,008 registered voters found 52% support for the CLARITY Act after a neutral description, 11% opposed, and 70% of respondents said the United States should already have passed crypto legislation.

The draft’s remaining bracketed items include language negotiators previously thought settled. If the committee proceeds with a markup, members will vote on the draft text and any amendments offered during the session. Timing for a committee vote remains uncertain.