U.S. Senate Banking Committee Releases Text of Clarity Act Crypto Market Structure Bill Ahead of Thursday Vote

The U.S. Senate Banking Committee released the 309-page Clarity Act on May 12, 2026, establishing a comprehensive regulatory framework for cryptocurrencies ahead of a May 15 committee vote. The legislation protects software developers and DeFi infrastructure providers while restricting stablecoin yield payments, a provision banking lobbying groups pushed to strengthen further. The bill notably lacks conflict-of-interest provisions despite Senator Elizabeth Warren citing President Trump's $1.4 billion in crypto gains, with White House negotiators rejecting targeted ethics rules. After committee approval, the bill must merge with the Senate Agriculture version and secure 60 Senate votes, with the Trump administration targeting July 4 completion though Senator Gillibrand predicts early August.

Clarity Act bill release

• ▪Patrick Witt serves as White House crypto adviser in the Trump administration
• ▪The Clarity Act includes provisions matching the Blockchain Regulatory Certainty Act that protect software developers who don't control people's money from being treated as money transmitters
• ▪The Clarity Act bill text released by the U.S. Senate Banking Committee is 309 pages long
• ▪The U.S. Senate Banking Committee released the text of the Clarity Act crypto market structure bill just after midnight on May 12, 2026

Ethics provision controversy

• ▪The conflict-of-interest section for the Clarity Act is not under the jurisdiction of the U.S. Senate Banking Committee and must be added to the legislation later
• ▪President Donald Trump and his family gained at least $1.4 billion from crypto deals in one year in office, according to Senator Elizabeth Warren
• ▪Senator Elizabeth Warren is the ranking Democrat on the U.S. Senate Banking Committee
• ▪The Clarity Act draft released on May 12, 2026 does not include an ethics provision addressing conflicts of interest for government officials profiting from the crypto industry

Stablecoin yield restrictions

• ▪Galaxy research released in May 2026 contends that trillions of dollars worth of foreign capital will flow into the U.S. financial system from stablecoin growth originating offshore
• ▪Banking industry lobbying groups petitioned their members over the weekend before May 12, 2026 to make a final push among lawmakers to further limit stablecoin rewards programs
• ▪Coinbase is working with at least five of the largest global banks on crypto integration, according to CEO Brian Armstrong on May 11, 2026

DeFi developer protections

• ▪The DeFi Education Fund stated it will track amendments to the Clarity Act during the week of May 12, 2026 and flag those that oppose the DeFi sector
• ▪The Clarity Act includes protections for DeFi developers and infrastructure providers under the Exchange Act

Legislative path forward

• ▪Senator Kirsten Gillibrand predicted the Clarity Act would be completed by the first week of August 2026
• ▪The U.S. Senate Banking Committee is scheduled to vote on the Clarity Act on May 15, 2026
• ▪After U.S. Senate Banking Committee approval, the Clarity Act would need to be merged with a similar version approved earlier by the Senate Agriculture Committee
• ▪The Guiding and Establishing National Innovation for U.S. Stablecoins of 2025 (GENIUS) Act passed the U.S. Senate in 2025 on a 68-30 vote
• ▪The Clarity Act requires 60 yes votes in the full U.S. Senate, necessarily including a significant number of Democrats
• ▪White House crypto adviser Patrick Witt stated the Trump administration aims for a July 4, 2026 completion date for the Clarity Act

Perspective of Senator Elizabeth Warren and Democratic ethics advocates

• ▪Senator Elizabeth Warren views the absence of ethics provisions in the Clarity Act as problematic given President Trump's $1.4 billion in crypto gains during his first year in office