The Senate Banking Committee faces more than 100 amendments to the Digital Asset Market Clarity Act ahead of Thursday’s markup vote, with stablecoin yield products and ethics provisions emerging as the central disputes that could determine whether the bill advances or stalls again. The 309-page bill, updated May 13, aims to establish clear jurisdictional boundaries between the SEC and CFTC after years of enforcement-based regulation. The markup vote is scheduled for 10:30 a.m. Thursday in Room 538 of the Dirksen Senate Office Building.
Stablecoin Yield Compromise Under Fire
The most contentious amendments target a Tillis-Alsobrooks compromise that would prohibit passive interest on stablecoins while allowing rewards tied to genuine transactions. Banking groups, represented by the American Bankers Association, have sent 8,000 letters opposing the language, arguing it still permits high-yield savings replication without bank-level deposit requirements. Senators Jack Reed and Tina Smith filed amendments to tighten stablecoin standards. The compromise was designed to bridge crypto industry demands for yield products and banking sector concerns about deposit base erosion, but its survival remains uncertain as amendments pile up.
Ethics Provisions and Political Divisions
Senator Chris Van Hollen proposed ethics provisions restricting senior officials and families from crypto business ownership, a move tied to Trump administration concerns. These provisions have split the Republican coalition that supports the broader bill, creating secondary friction ahead of markup. Senator Elizabeth Warren has filed 40 amendments as a leading opposition voice, signaling Democratic strategy to either reshape or delay the bill. The ethics language has become a proxy for broader political tensions around crypto’s role in the incoming administration.
Stalled Momentum and 2026 Timeline
The committee previously cancelled two markups—one in January when 137 amendments were filed—suggesting Thursday’s session could face similar delays. The House passed the CLARITY Act 294–134 on July 17, 2025, but the Senate missed its original September 2025 floor vote target and subsequent end-of-year deadline. Current projections target a full Senate vote for June-July 2026, with a presidential signature by July 4, 2026. Prediction markets assign 60% odds to the bill becoming law in 2026, though the amendment volume signals extended debate ahead.
What Clarity Act Passage Means for Crypto Markets
The bill’s core objective is to end years of jurisdictional ambiguity by assigning digital asset categories to either SEC or CFTC oversight. Passage would eliminate enforcement-based regulation in favor of clear statutory boundaries. However, the stablecoin yield and ethics disputes could fracture the bipartisan coalition needed for Senate passage. If amendments substantially rewrite the bill, a second House vote would be required, extending the timeline further into 2026 or beyond.
