Particle.news
Download on the App Store

Senate Banking Sets May 14 Markup for Crypto CLARITY Act

The session will test a fragile deal that bans passive stablecoin yield.

Overview

  • The Senate Banking Committee, which set a May 14, 10:30 a.m. session on Friday, will take up the Digital Asset Market CLARITY Act in a public amendment and voting process.
  • The bill would set clear rules for digital assets by defining when tokens are securities or commodities and by dividing oversight between the SEC and CFTC to replace case-by-case enforcement.
  • A bipartisan compromise from Senators Thom Tillis and Angela Alsobrooks would bar passive, deposit‑like returns on stablecoin reserves while allowing rewards tied to active use, reopening the path to a vote.
  • Major banking trade groups urged tighter language in a May 8 letter, warning that activity-based rewards could mimic interest, pull deposits from insured banks, and weaken lending to households and small businesses.
  • Democrats are pressing for an ethics rule that bars senior officials from profiting from crypto, and any text that advances must later be reconciled with the Senate Agriculture version before a 60‑vote Senate floor test and potential White House action.