Senate Banking Committee Approves Digital Asset Market Clarity Act Despite National Security Concerns

May 14, 2026

The U.S. Senate Banking Committee approved the Digital Asset Market Clarity Act on May 14, 2026 with a 15-9 vote, marking the first major legislative progress for comprehensive cryptocurrency regulation. Only two Democratic senators, Ruben Gallego and Angela Alsobrooks, voted in favor, though Alsobrooks said she would not support it on the Senate floor until outstanding issues were addressed. The bill establishes regulatory boundaries between the SEC and CFTC, bans passive stablecoin yield while allowing rewards for active use, and includes protections for software developers. Democratic opponents led by Elizabeth Warren introduced multiple failed amendments addressing conflicts of interest, national security concerns, and consumer protections, with minority staff releasing an advisory warning the bill fails to address vulnerabilities exploited by criminals and foreign adversaries. The legislation now advances to the Senate floor where it will be merged with the Agriculture Committee's version.

Senate Banking Committee vote

▪Angela Alsobrooks said she would not support the Digital Asset Market Clarity Act on the Senate floor until outstanding issues were addressed.
▪The Digital Asset Market Clarity Act will advance to the Senate floor where Senators will try to merge it with the Senate Agriculture Committee's version.
▪The U.S. House of Representatives passed its version of the Digital Asset Market Clarity Act in 2025.
▪Ruben Gallego and Angela Alsobrooks were the only Democratic Senators who voted in favor of the Digital Asset Market Clarity Act at the Senate Banking Committee.
▪The U.S. Senate Banking Committee approved the Digital Asset Market Clarity Act on May 14, 2026 with a 15-9 vote.

Stablecoin yield compromise

▪Ripple's RLUSD stablecoin has a market cap of $322.27 billion.
▪The May 11, 2026 version of the Digital Asset Market Clarity Act allows rewards on stablecoins for activities like trading, transactions, or staking.
▪Circle's USDC stablecoin accounts for around 24% of the total stablecoin market cap.
▪The May 11, 2026 version of the Digital Asset Market Clarity Act bans rewards on passive stablecoin holdings that are economically or functionally equivalent to deposit interest.

Failed ethics amendments

▪Chris Van Hollen's amendment to ban government officials from holding crypto business ties failed with an 11-13 vote.
▪Elizabeth Warren introduced an amendment to release bank supervisory information about Jeffrey Epstein, which failed with an 11-13 vote.
▪Elizabeth Warren introduced an amendment to address sanctions authority in the Digital Asset Market Clarity Act, which failed with an 11-13 vote.
▪Mike Rounds proposed an amendment to adopt sandboxes for artificial intelligence tools, which passed with a 15-9 vote.
▪Elizabeth Warren introduced an amendment to keep risky assets out of retirement accounts, which failed with an 11-13 vote.

Warren national security concerns

▪Elizabeth Warren stated that Jeffrey Epstein was an early backer of crypto and poured millions of dollars into Coinbase.
▪Elizabeth Warren said the Digital Asset Market Clarity Act is not ready and needs more debate, more consumer protections, and raised concerns about national security and government officials with ties to crypto businesses.

Crypto industry response

▪Jeremy Allaire said the Digital Asset Market Clarity Act is a very good compromise and Circle Internet Group was optimistic about the outcome.
▪Brian Armstrong said the Digital Asset Market Clarity Act could reshape how Americans interact with money and financial markets.
▪Brian Armstrong said both the crypto and banking sectors have made concessions and the latest version of the Digital Asset Market Clarity Act is a true compromise.

Perspective of Democratic opponents (Elizabeth Warren, Chris Van Hollen)

▪Minority staff released a national security advisory warning the Digital Asset Market Clarity Act fails to address vulnerabilities exploited by criminals and foreign adversaries.