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US senators are set to review the Clarity Act next week, as Congress resumes work on a crypto market structure bill that could shape federal rules for digital assets. The Senate Banking Committee will hold an executive session on May 14 at 10:30 a.m. in Washington, D.C.
The bill aims to define how US regulators should treat crypto tokens, stablecoins, exchanges, and related market activity. Additionally, it seeks to settle a dispute between crypto firms and banks over rewards linked to dollar-backed stablecoins.
Senate Banking Committee Chairman Tim Scott said the panel will consider the bill during the scheduled session. The move comes after earlier delays, including a canceled January markup that followed concerns from both crypto firms and banking groups.
Scott had said he wanted ‘13 of 13 Republicans on board,’ referring to all Republican members of the committee. However, it remains unclear whether Democrats on the panel will support the bill because several policy disputes remain unresolved.
The House passed its version of the Clarity Act in July last year. The Senate must now advance its own version before lawmakers can send a final package to President Donald Trump’s desk.
Moreover, the Senate Banking version may still need to be merged with work from the Senate Agriculture Committee. That step would come before a possible full Senate vote.
Stablecoin rewards remain one of the main disputes in the bill. A compromise brokered by Republican Senator Thom Tillis and Democratic Senator Angela Alsobrooks would ban customer rewards on idle holdings of dollar-backed stablecoins.
However, the proposal would allow rewards tied to other stablecoin activities, such as sending payments. Lawmakers designed the language to separate payment-related rewards from products that resemble bank deposits.
Banking trade groups argue the compromise does not go far enough. They say the language could still allow crypto intermediaries to offer products that compete with bank deposits.
The American Bankers Association, Bank Policy Institute, Independent Community Bankers of America, National Bankers Association, and Consumer Bankers Association said ‘additional work is needed’ to protect consumers while supporting digital asset innovation.
Tillis acknowledged the dispute in a post on X. He said banks may not agree with the language, adding, “we respectfully agree to disagree.”
Also Read: CLARITY Act Stablecoin Deal Clears Major Path for Senate Crypto Review
Crypto firms have pushed for the Clarity Act because they say current US rules leave major questions unresolved. The bill would define when tokens fall under securities rules, commodities rules, or other legal treatment.
In addition, the bill could clarify the roles of the Securities and Exchange Commission and the Commodity Futures Trading Commission. Crypto companies say that clearer rules would help exchanges, issuers, and investors understand compliance duties.
Coinbase and other industry participants have backed the latest stablecoin compromise after earlier concerns. In January, Coinbase CEO Brian Armstrong said the exchange opposed parts of the bill, including language tied to stablecoin yield.
Furthermore, crypto firms argue that a broader ban on third-party stablecoin rewards would limit competition. Banks reject that view and say lawmakers should close what they describe as a loophole in existing law.
Many congressional Democrats remain opposed to the bill. They argue that the Clarity Act needs stronger anti-money laundering rules before it can move through the full Senate.
Additionally, some Democrats want the bill to address political officials who may profit from crypto ventures while federal agencies regulate the sector. Senator Kirsten Gillibrand has called for an ethics provision covering senior government officials.
The bill would need support from at least seven Democrats in the full Senate to pass. However, lawmakers and industry experts say the text could still change after the committee vote.
The May 14 session will mark a key step for the Clarity Act, but the bill still faces pressure from banks, Democrats and unresolved Senate negotiations.
