U.S. Senate Banking Committee to Review Crypto Clarity Act Next Week
The U.S. Senate Banking Committee will review the Clarity Act, a bill on crypto market structure, next week, with a markup hearing scheduled for May 14.
The bill aims to clarify the regulatory authority of the SEC and CFTC over digital assets. It has passed the House and has been under negotiation in the Senate for months, with key provisions on stablecoin yields having reached a compromise.
The crypto industry and banking lobby groups are engaged in a struggle over regulatory clarity. If the Clarity Act passes, it will provide a federal framework for institutional funds and innovative projects, benefiting compliant platforms and RWA development, while traditional banks face pressure in the stablecoin competition.
Source: Public Information
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Clarity Act (full name Digital Asset Market Clarity Act of 2025) was passed in the House with a high vote of 294-134 in July 2025. Senate Banking Committee Chairman Tim Scott led negotiations for months, which were previously delayed multiple times due to disagreements over stablecoin yields and DeFi provisions. This advancement marks the final push for the 2026 legislative window.
On the capital pathway, the passage of the bill will clarify the boundary between "digital commodities" and securities, guiding institutional capital from gray areas to compliant exchanges, custody, and RWA products, while forcing stablecoin issuers like Tether and Circle to adjust yield strategies to align with the banking interest compromise.
Similar to the regulatory restructuring of banks and fintech after the Dodd-Frank Act in the 2010s, and the return of European crypto capital following the implementation of the EU MiCA, the U.S. crypto industry is in the late stage of transitioning from state-level fragmented regulation to a unified federal framework.
Structural judgment: Essentially a regulatory change. The Clarity Act clarifies the CFTC's dominance over spot digital commodities and the SEC's jurisdiction over securities, aiming to resolve long-standing regulatory uncertainty that has led to capital outflows and stifled innovation, pushing pricing power from gray arbitrage to compliant federal infrastructure, accelerating large-scale institutional capital entry.
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The longer regulatory uncertainty lasts, the stronger the compliance moat becomes.
The bill delays selling time, and once passed, sells certainty in pricing power.
Whoever locks in federal rules first will secure the next round of capital and innovation entry.