finance
Senate Banking Committee to Vote on Digital Asset Market Clarity Act on May 14
The Senate Banking Committee will hold a markup hearing and vote on the Digital Asset Market Clarity Act on May 14 at 10:30 a.m. ET. The bill aims to establish regulatory oversight for digital assets including stablecoins. Banks have raised concerns that provisions on stablecoin yields could threaten traditional deposits.
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m. ET. The legislation would establish rules for digital asset oversight, including provisions governing stablecoin operations. SEC officials have said the legislation would help bring greater regulatory clarity to crypto markets. The Bitcoin & crypto market structure legislation will "supercharge" the SEC to bring more clarity into the market, according to the SEC Crypto Task Force Chief Counsel.
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.
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.
Banking trade associations, including the American Bankers Association, said the compromise falls short and provided specific recommended edits. Industry groups sent a letter stating that additional work is needed to protect consumers while embracing innovation.
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.
Senators have indicated the bill could still be amended between the committee vote and any floor consideration to address remaining Democratic concerns. Stablecoins are digital currencies designed to maintain a steady value, typically pegged to the U.S. dollar.
