Senate to Mark Up Clarity Act May 14 After Stablecoin Deal

The Senate Banking Committee scheduled a markup of the Digital Asset Market Clarity Act for May 14 after Senators Thom Tillis and Angela Alsobrooks reached a compromise on stablecoin yield. The agreement bans passive interest paid simply for holding stablecoins while allowing rewards tied to verified platform activity.

Under the compromise, stablecoin issuers may not offer yield that accrues to holders without requiring on‑platform participation. Incentives will be permitted when linked to transactions, staking, or other verifiable user actions that reflect active use of a platform.

The markup provides the most specific date yet for the bill’s committee consideration. The White House is seeking full passage by July 4. Congress begins its Memorial Day recess on May 21, leaving roughly one week of Senate floor time after the markup. If the Senate moves quickly, four weeks in June could allow final action. A delay past mid‑June could push consideration into an August recess that is expected to yield little movement, and the November midterm elections would affect the legislative calendar.

Committee debate will focus on the stablecoin yield language and on definitions that shape custody rules, reserve requirements and which activities qualify as permitted platform participation. Passage out of the Senate Banking Committee would send the bill to the full Senate, where leadership must secure floor time and the votes needed for final passage.

Prediction-market bettors raised the chances of passage to about 79 percent after the compromise and later reduced those odds to roughly 63 percent. Market participants and lawmakers are watching the next five weeks as the window for Senate action narrows.

Industry participants and regulators have shown interest in the bill because it aims to clarify rules for stablecoins and related digital asset activities. Supporters argue the legislation would provide regulatory certainty for issuers and banks. Critics raise concerns about consumer protection and financial stability.

With the markup set, senators will have an opportunity to propose amendments and vote on changes to the compromise language during the May 14 committee session.