Key Insights:
- The CLARITY Act is moving to the Senate Banking Committee’s markup schedule.
- The committee will host a meeting on May 14 to review this crypto regulation bill.
- Ripple CLO Stuart Alderoty and Coinbase’s Faryar Shirzad have expressed optimism towards this development.
In the week of May 11, the U.S. Senate Banking Committee will host a markup session for the CLARITY Act. The announcement drew attention from crypto stakeholders, including Ripple CLO Stuart Alderoty.
Ripple CLO Lauds Senate Markup on CLARITY Act
In response to the confirmation of the Senate’s next step, Alderoty wrote, Senate Banking Committee…Clarity Act…May 14 markup. A hard-earned milestone. Washington has a narrow window — let’s not waste it.”
The executive session will be held on Thursday, May 14, at 10:30 A.M. EST in the Dirksen Senate Office Building. If approved, the bill will likely be a major factor in determining the federal regulatory framework for digital assets in the United States. Lawmakers considered it one of the most important crypto-related bills to be moving through Congress.
It will help determine whether cryptocurrencies are securities or commodities and establish the powers of the federal regulators. The industry has long complained about the absence of clear rules, which stifled innovation and pushed cryptocurrencies to other shores.
The Stablecoin Yield Debate Continues Despite New Draft
One of the main aspects of the crypto bill involves regulations for stablecoins pegged to the U.S. dollar. Senators Thom Tillis and Angela Alsobrooks recently reached a compromise with banking entities on this topic.
Under the new language, crypto companies will not be able to pay an interest-like reward on having an idle balance of stablecoins. They added this provision as they believe these rewards would act similarly to bank deposit yields. However, the CLARITY Act Will still allow incentives related to active use (transfers and payments).
Nonetheless, banking entities have continued to express discontent. They believe that incentives for stablecoins could drive consumer funds out of insured banks into digital asset exchanges.
Crypto Firms Continue to Rally in Favor of CLARITY Act
The crypto sector is urging lawmakers to enact the bill before the 2026 midterm elections. They believe that a shift in Washington might stall the path to digital asset regulation. The House of Representatives approved the CLARITY Act in 2025 with bipartisan support.
However, the Senate has yet to pass the bill before it can be sent to President Donald Trump. Galaxy Digital’s Alex Thorn noted that Senate control could shift in 2026 following the midterm elections.
Thorn cautioned that Democrats taking control of the Senate could lead to Elizabeth Warren or Sherrod Brown to lead the Senate Banking Committee. If such crypto critics take the leadership, it could turn the tide of digital asset regulation. Hence, Ripple CLO mentioned that there’s a “narrow window” for the CLARITY Act to pass.
A few Democratic lawmakers are still against the current plan, saying the protection against money laundering is inadequate. Others have suggested stricter provisions to prohibit public sector officials from enriching themselves through crypto-related activities.
Meanwhile, Coinbase’s chief policy officer, Faryar Shirzad, also applauded the committee’s decision. Shirzad posted a message on X that read: “Big step forward.” He believes that with clear market structure rules, consumers will be better protected. He noted that it will encourage innovation in crypto in the U.S. and not overseas.
Republican Senator Bernie Moreno said the committees are making progress toward the blending of their proposals into “a tidy package.” In a statement, Moreno said that President Trump could sign the CLARITY Act as soon as July 4.
