A U.S. Senate push to reshape crypto market rules is moving toward a mid-May committee markup, but disputes over ethics, stablecoin yield, and political concerns still threaten bipartisan support.
The CLARITY Act seeks to create a federal framework for digital assets. It would divide oversight between the SEC and CFTC. Sen. Tim Scott, chair of the Senate Banking Committee, said the bill is nearing a key stage. Lawmakers are aiming for a bipartisan committee vote in May.
Sen. Thom Tillis told Politico he would oppose final passage without ethics provisions. That position keeps one of the bill’s political disputes at the center of negotiations. The House passed its version in July 2025 by a 294–134 vote. That vote included support from 78 Democrats.
The Senate Banking Committee later released a 278-page draft in January 2026. Since then, lawmakers have delayed several planned markups. SEC Chair Paul Atkins described the agency’s March guidance as “an important bridge” while Congress works on permanent crypto rules, Axios reported.
Banks continue to oppose proposals that would let crypto firms offer yield on stablecoin deposits. They argue that such products could pull money away from traditional banking. Standard Chartered estimates stablecoins could divert up to $500 billion from U.S. bank deposits by 2028, according to Reuters.
A White House Council of Economic Advisers report gave a different estimate. It said stablecoin yield would displace about 0.02% of total bank loans, or roughly $2.1 billion. Industry group NC Blockchain pushed Tillis last week to move the bill forward. Still, the stablecoin yield debate remains unresolved.
Meanwhile, decentralized finance language has drawn more scrutiny. Some lawmakers worry the wording could limit prosecutors’ ability to pursue financial crime cases. The Senate also faces political pressure tied to Donald Trump’s crypto-related business interests. Bloomberg reported that Trump has earned at least $1.4 billion through crypto ventures.
Those ventures include World Liberty Financial, a decentralized finance and stablecoin project. His family also holds a stake in the bitcoin mining firm American Bitcoin. Democrats argue those ties raise conflict-of-interest concerns as Congress writes crypto rules. Sen. Angela Alsobrooks told The Block that ethics and illicit finance issues must be resolved.
Read More: Clarity Act Stablecoin Yield Debate Delayed as US Lawmakers Remain Divided on Crypto Policy
The bill needs 60 Senate votes to pass. That means all Republicans and several Democrats would need to support it. That path tightened after Sen. John Kennedy said he would withhold support for crypto legislation, Punchbowl News reported. Kennedy linked his position partly to frustrations with the House and White House over a stalled Senate housing bill.
His defection reduces effective Republican support from 53 to 52. As a result, the bill would likely need eight Democrats instead of seven.
Earlier this year, the Senate Agriculture Committee advanced a related crypto bill without Democratic support. Lawmakers cited Trump-linked crypto concerns as a key issue. Sen. Cynthia Lummis has warned that failure in this Congress could delay broad crypto regulation for years.
Sen. Bernie Moreno also pushed for a fast timeline at a Washington event on April 22. He said the bill must clear Congress by the end of May. Digital policy analyst Adrian Wall told Reuters the window could close if the bill does not reach the president’s desk by July. Polymarket odds moved from 38% to 46% over the past week. The Block cited estimates placing the bill’s chances between 15% and 50%.
The CLARITY Act is moving toward a key Senate markup, but its path remains uncertain. Lawmakers still need to settle disputes over ethics rules, stablecoin yield, DeFi enforcement, and political conflicts. With 60 votes required, bipartisan support will decide whether the bill passes.