Senate Banking Committee Holds Markup on Digital Asset Market Clarity Act of 2025

m. According to CoinDesk, the hearing is the next step for the legislation that has been under discussion for years. Senator Cynthia Lummis stated that the United States will “lead the way” on crypto innovation.

The bill, known as the Clarity Act, would establish a regulatory framework for digital assets and crypto markets. Last week lawmakers released a compromise text addressing stablecoin yield. The updated language would prohibit crypto companies from offering yield on static stablecoin reserve holdings while permitting rewards for stablecoins used in certain activities.

An exchange had previously announced it was withdrawing support over provisions related to stablecoin yield and other issues, after which the legislation entered limbo in January.

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

Senator Kirsten Gillibrand has called for an ethics provision in the bill that 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. The markup is one of several procedural steps required before the bill could become law. Further negotiations between committees and potential floor amendments lie ahead.