Senate Banking Committee Schedules Vote on Crypto Market Structure Bill

m. The hearing marks the first major step forward for the legislation since it entered limbo in January. The bill, known as the Clarity Act, aims to establish a regulatory framework for digital assets and crypto markets. It had faced delays after an exchange announced it was withdrawing support over provisions related to stablecoin yield and other issues.

Last week lawmakers released a compromise text on the yield question. The updated language would prohibit crypto companies from offering yield on static stablecoin reserve holdings while permitting rewards for stablecoins used in certain activities.

Banking industry groups voiced reservations about the compromise. A letter from multiple trade associations including the American Bankers Association stated that additional work is needed to balance innovation with consumer protection. The groups provided specific recommendations for edits to the text released last week.

Despite those concerns, the scheduling of the markup hearing indicates lawmakers intend to proceed with the current version.

Gillibrand has called for an ethics provision in the bill. The measure would bar senior government officials from profiting off the crypto industry while regulating it. Her office cited polling data showing that 73% of registered U.S. voters believe senior government officials should not have business ties to the industry.

It remains unclear whether the ethics language will appear in the Senate Banking Committee's version of the bill. After the Banking Committee markup, the Senate must merge this text with a version produced by the Senate Agriculture Committee. Only then can the full Senate vote on advancing the combined legislation.

Lummis said the United States will lead the way on crypto innovation. She signaled strong support for moving the bill forward. Lummis added that the committee should pass the Clarity Act out of the Banking Committee on Thursday. Her comments coincided with the announcement of the markup date.

The crypto industry has welcomed the scheduling of the hearing. Multiple outlets reported renewed momentum for market structure legislation that has been under discussion for years.

“Let's pass the Clarity Act out of the Banking Committee on Thursday!”

The markup is one of several procedural steps required before the bill could become law. Observers note that further negotiations between committees and potential floor amendments lie ahead.