The U.S. Senate Banking Committee is preparing to vote on the CLARITY Act as early as May 14, 2026, according to multiple sources familiar with the process. This landmark crypto regulation bill has gained significant momentum after months of stalling in the Senate, and its potential markup comes just weeks after a bipartisan compromise broke a deadlock over stablecoin yield provisions.
Committee Chairman Tim Scott is aiming to complete the markup before the May 21 Memorial Day recess, with the White House targeting a July 4 signing—America’s 250th anniversary—for President’s signature. Draft legislative text has already been circulated to select industry participants, and the bill’s proponents are racing to secure a full Senate vote following committee approval.
The CLARITY Act passed the full House in July 2025 with a bipartisan vote of 294 to 134. It then stalled in the Senate primarily over disagreements on whether stablecoins should offer passive yield. The breakthrough came on May 1, 2026, when Senators Thom Tillis and Angela Alsobrooks reached a compromise: the deal bans passive yield on stablecoins, meaning simply holding USDC or USDT will not generate interest-like returns, but activity-based rewards tied to transactions, trading volume, or platform use remain permitted.
If enacted, the CLARITY Act would end years of regulatory confusion by drawing a clear boundary between SEC and CFTC jurisdiction over digital assets, establishing a proper framework for exchanges and institutions, and shifting away from regulation by enforcement. This comes as Consensus 2026 in Miami saw record institutional participation—35% of the 20,000 attendees represented an estimated $10 trillion in assets under management. Senators Cynthia Lummis and Bernie Moreno have warned that failure to advance the bill now could delay any meaningful crypto legislation until 2030.
Senator Ashley Moody defended Washington's evolving approach to crypto during a session at Consensus 2026, joined by Digital Chamber CEO Cody Carbone. Her appearance, along with those of Senator Kirsten Gillibrand and CFTC Chairman Michael Selig, underscores a shift toward consistent engagement between policymakers and the digital asset industry. While optimism is high, some community members caution that the timeline remains unconfirmed until the markup appears on the official Senate calendar. If the Banking Committee advances the bill, both chambers must reconcile their versions before it reaches the President’s desk.
