Senate Banking Committee Schedules May 14 Markup for CLARITY Act Amid Banking Industry Opposition

May 9, 2026

The Senate Banking Committee will hold a May 14 markup for the CLARITY Act, a bill to regulate digital assets. The move follows a fragile compromise on stablecoin rewards, which the banking industry opposes, fearing it creates loopholes. The bill also faces hurdles from Democrats demanding ethics provisions aimed at the Trump family's crypto ventures. With the White House targeting a July 4 passage, the bill faces a tight timeline before the May 21 recess.

CLARITY Act markup schedule

▪The U.S. Senate Banking Committee has scheduled a markup hearing for the Digital Asset Market Clarity Act for May 14.
▪The CLARITY Act (H.R. 3633) would create a federal framework for digital assets, dividing jurisdiction between the SEC and the CFTC.
▪Crypto industry groups, including The Digital Chamber and the Blockchain Association, have publicly supported the bill's progress.
▪The ethics provisions are reportedly aimed at the Trump family's digital-asset ventures, which Forbes estimates have added $1.4 billion to their net worth.
▪A coalition of banking groups, including the American Bankers Association, formally opposes the bill's current text.
▪The House of Representatives passed its version of the bill on July 17, 2025, in a 294–134 bipartisan vote.
▪Some Democratic senators, including Kirsten Gillibrand, are demanding ethics provisions to prevent officials from profiting from the crypto industry.

Stablecoin yield compromise language

▪Coinbase had previously withdrawn its support for the bill in January over concerns about the stablecoin yield restrictions.
▪A compromise on stablecoin incentives was negotiated by Senators Thom Tillis (R-NC) and Angela Alsobrooks (D-MD).
▪The compromise bans passive, interest-like yield on stablecoin balances but permits activity-based rewards for actions like payments.
▪In a May 4 joint statement, Senators Tillis and Alsobrooks declared the stablecoin deal "final" despite continued lobbying from the banking industry.
▪Banking groups argue the compromise creates a loophole for products that function as interest-bearing accounts and could draw deposits from banks.

Congressional passage timeline pressure

▪SEC Chair Paul Atkins and Treasury Secretary Scott Bessent have publicly urged Congress to pass the legislation.
▪Polymarket prediction market odds for the bill passing in 2026 have fluctuated, recently sitting around 63-75%.
▪After the Banking Committee, the bill must be reconciled with language from the Senate Agriculture Committee before a full Senate floor vote.
▪The White House has set a target of July 4 for the CLARITY Act to be passed by Congress and signed into law.
▪The bill faces a tight schedule, with a key deadline being the Senate's Memorial Day recess beginning May 21.