Senate Banking Committee Schedules Vote on Crypto Market Structure Bill for May 14

m. ET, advancing the Digital Asset Market Clarity Act of 2025 after months of delay. The legislation would set rules for digital asset oversight and includes provisions on stablecoin operations. The vote marks a loss for the banking industry, which has opposed parts of the bill related to stablecoin yields.

Banks argue that the language still allows products too similar to interest-bearing savings accounts, potentially pulling deposits away from traditional institutions. Industry groups sent a letter stating that additional work is needed to protect consumers while embracing innovation.

Lawmakers released a compromise proposal last week on how crypto companies could offer rewards to stablecoin users. The text would prohibit yield on static stablecoin reserve holdings while permitting rewards tied to active use. Crypto companies including Coinbase have since backed the updated language.

Banking trade associations, including the American Bankers Association, said the compromise falls short. They provided specific recommended edits but the scheduling of the markup suggests lawmakers plan to proceed with the current version. The committee had been set to advance the bill in January but canceled at the last minute after objections from both banking and crypto sectors.

It remains unclear whether any Democrats will support the bill in committee due to unresolved issues. One point of contention involves provisions limiting how politicians can profit from digital assets. A senator long involved in crypto policy has called for an ethics provision barring senior government officials from holding business ties to the industry they regulate.

The markup represents a key step but further hurdles remain. The Senate would need to merge this version with a separate version from the Senate Agriculture Committee before a full floor vote. Work on the bill could continue after the committee stage to build broader support, though time is limited in the current session.

“The Bitcoin & crypto market structure legislation will 'supercharge' the SEC to bring more clarity into the market.”

SEC officials have said the legislation would help bring greater regulatory clarity to crypto markets. Movement on the bill comes as the industry seeks long-sought rules of the road. Stablecoins are digital currencies designed to maintain a steady value, typically pegged to the U.S. dollar.

The banking industry has sounded alarms about potential disruption to traditional deposit systems. Historically, rewards have served as a major incentive for users to hold stablecoins. Senators have indicated the bill could still be amended between the committee vote and any floor consideration to address remaining Democratic concerns.