Digital Asset Market Clarity Act Heads to Senate Banking Markup This Week

Key Takeaways

• A markup hearing for the Digital Asset Market Clarity Act has been scheduled by the Senate Banking Committee for May 14
• Progress on the legislation halted earlier this year when Coinbase withdrew its backing due to concerns over stablecoin yield restrictions and DeFi provisions
• Senators Tillis and Alsobrooks negotiated a compromise on stablecoin yield regulations last week
• Major banking organizations remain skeptical and argue the bill requires additional refinement
• Senator Gillibrand is pushing for ethics safeguards to prevent government officials from profiting from crypto holdings

The Senate Banking Committee has officially scheduled May 14 for its markup session on the Digital Asset Market Clarity Act of 2025, commonly referred to as the Clarity Act. The proceedings are set to commence at 10:30 a.m.

This represents a critical milestone in the legislative journey of the bill. During a markup session, committee members examine, debate, and cast votes on proposed legislation prior to advancing it to the complete Senate chamber.

The legislation has experienced significant turbulence over recent months. Back in January, Coinbase CEO Brian Armstrong publicly announced the cryptocurrency exchange was withdrawing its endorsement. Armstrong cited multiple issues, including insufficient legal safeguards for developers working on open source software, prohibitions on stablecoin yield generation, and problematic decentralized finance regulations.

This withdrawal effectively brought the bill’s momentum to a standstill for several months.

Last week marked a turning point when Senators Thom Tillis and Angela Alsobrooks unveiled compromise language designed to resolve the stablecoin yield controversy. Under the proposed compromise framework, cryptocurrency platforms would be prohibited from paying yield on passive stablecoin reserves, while permitting rewards when stablecoins participate in active financial transactions.

Traditional Banking Sector Voices Reservations

Universal support remains elusive. A joint letter from multiple banking industry associations — including the American Bankers Association, the Bank Policy Institute, and the Independent Community Bankers of America — stated that “additional work is needed” on the bill’s wording. These organizations submitted detailed recommendations for modifying the compromise language unveiled last week.

Neverthstanding these reservations, the fact that a markup has been scheduled indicates Senate leadership is prepared to proceed with the legislation in its present form.

Debate Over Ethics Requirements Continues

Senator Kirsten Gillibrand, who has historically championed the cryptocurrency sector, has introduced an additional consideration. She is advocating for language in the bill that would prohibit senior government officials from financially benefiting from the crypto industry while simultaneously holding regulatory authority over it.

Polling data commissioned by CoinDesk revealed that 73% of registered US voters favor such restrictions.

Nevertheless, this ethics provision may be absent from the Senate Banking Committee’s iteration of the legislation. Following the Banking Committee’s markup process, the Senate must reconcile its version with the text produced by the Senate Agriculture Committee before the complete Senate body can hold a final vote.

Kara Calvert, Coinbase’s vice president of US policy, had forecast the markup timing during remarks at the Consensus 2026 conference just days prior. She additionally observed that the bill will require a minimum of 60 votes and bipartisan cooperation to secure passage.

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