Senate Nears Mid-May CLARITY Act Markup Amid Crypto Fight

Senators set a committee markup of the CLARITY Act for mid‑May as lawmakers continue negotiating technical and political provisions of the bill. The Senate Banking Committee released a 278‑page draft in January 2026 and has postponed multiple earlier markup dates.

The measure would establish a federal framework for digital assets and divide oversight between the Securities and Exchange Commission and the Commodity Futures Trading Commission. Lawmakers remain at odds over how to allocate regulatory authority, how to treat yield on stablecoin deposits, and whether to include detailed ethics and conflict‑of‑interest rules.

Senate Banking Committee Chair Tim Scott is seeking a committee vote in May. Senator Thom Tillis opposes final passage unless the bill includes specific ethics provisions tied to potential conflicts involving public officials.

The House approved its version of crypto legislation in July 2025 by a 294–134 margin, with 78 Democrats in favor. In the Senate, the bill needs 60 votes to overcome a filibuster. Senator John Kennedy’s refusal to back the measure lowered effective Republican support to 52, increasing the number of Democratic votes required.

Banking industry groups oppose language that would let crypto firms offer yield on stablecoin deposits. One bank estimate projects as much as $500 billion could flow from U.S. bank deposits into stablecoins by 2028. A White House economic analysis estimates that allowing stablecoin yield would displace about $2.1 billion in bank lending.

Reports of former President Donald Trump’s financial ties to crypto projects have driven debate over ethics language. Analysts estimate Trump has received at least $1.4 billion from crypto‑related ventures and his family holds a stake in a bitcoin‑mining firm. Several Democrats say conflict‑of‑interest safeguards are necessary before they can support the bill.

Lawmakers have set public deadlines and issued warnings about timing. Senator Cynthia Lummis has said failing to pass legislation this session could delay new federal rules for years. Senator Bernie Moreno urged colleagues at an April event to clear the bill by the end of May. A digital policy analyst warned that if the bill is not on the president’s desk by July, the legislative window may close because of the election cycle.

SEC Chair Paul Atkins called the agency’s March guidance on digital assets “an important bridge” while Congress works on permanent statutory rules.

Betting markets and industry observers place the chances of passage this Congress between roughly 15% and 50%. One market moved odds from 38% to 46% in the past week.

The Senate Banking Committee will address the ethics language, stablecoin yield provisions and the SEC/CFTC division of authority at the mid‑May markup.