The Senate Banking Committee has scheduled a markup hearing for the Digital Asset Market Clarity Act of 2025, commonly referred to as the Clarity Act, on May 14 at 10:30 a.m. This hearing marks a significant step forward for the legislation, which had faced delays following Coinbase CEO Brian Armstrong’s withdrawal of support earlier this year.
In January, Armstrong expressed concerns over certain provisions related to stablecoin yield, prompting a reevaluation of the bill. Recently, Senators Thom Tillis and Angela Alsobrooks introduced a compromise text aimed at addressing these issues. The revised proposal would prohibit crypto companies from offering yield on static stablecoin reserves while permitting rewards for stablecoins actively involved in various activities. This adjustment appears to resolve one of the primary obstacles that had stalled the bill’s progress.
As of now, the full text of the updated legislation has not been publicly released. Banking industry groups have expressed reservations about the new compromise, indicating they will provide feedback. A letter from several banking trade associations, including the American Bankers Association and the Bank Policy Institute, emphasized the need for further revisions to ensure the bill fosters innovation in digital assets while safeguarding consumer interests.
The committee’s decision to proceed with the markup hearing suggests a commitment to advancing the current version of the legislation, despite the concerns raised by banking groups. However, additional issues remain unresolved. Senator Kirsten Gillibrand, a vocal advocate for the crypto sector, highlighted the necessity for an ethics provision that would prevent senior government officials from profiting from the industry while in regulatory positions. Her office reiterated this stance following her remarks at the Consensus Miami event, citing polling data indicating that 73% of registered U.S. voters oppose business ties between government officials and the crypto sector.
It remains unclear whether this ethics provision will be included in the Senate Banking Committee’s version of the bill. After the markup hearing, lawmakers will need to reconcile the Senate Banking version with the Senate Agriculture Committee’s proposal before a final vote can take place in the Senate.
The Senate Banking Committee is set to advance the Digital Asset Market Clarity Act, addressing key concerns over stablecoin yield. However, unresolved issues, including an ethics provision for government officials, may impact the bill's final form.