CoinDesk
The Senate Banking Committee will hold its long-awaited markup hearing for the Digital Asset Market Clarity Act on Thursday, May 14 at 10:30 a.m., a key procedural step toward moving the market structure bill out of limbo after months of deadlock over stablecoin yield and other provisions. The scheduling was announced despite a Friday letter from a coalition of banking trade associations — including the American Bankers Association, Bank Policy Institute, Independent Community Bankers of America, National Bankers Association, and Consumer Bankers Association — flagging that "additional work is needed" on the compromise text released last week by Senators Thom Tillis and Angela Alsobrooks.
Why it matters
The Clarity Act has been stalled since January, when Coinbase CEO Brian Armstrong said the exchange was pulling its support over stablecoin yield and other provisions. The Tillis-Alsobrooks compromise text addresses that issue by prohibiting yield on static stablecoin reserve holdings while still allowing rewards for stablecoins involved in active protocol participation — a carve-out that appears to resolve one of the central sticking points. Scheduling a markup over the objections of major banking trade groups signals the committee chair is willing to advance the current text and work the disagreements out on the floor rather than re-negotiate the underlying framework. Senate Agriculture Committee must still merge its version before any full-Senate vote.
Market impact
The biggest outstanding issue is an ethics provision championed by Senator Kirsten Gillibrand that would bar senior government officials from profiting off the crypto industry while regulating it — a position reinforced by a Thursday press release citing CoinDesk-commissioned polling showing 73% of registered voters believe officials should not have business ties to the industry. That provision may not land in the Banking Committee's version, setting up a likely floor fight or a conference-committee reconciliation.
Frequently asked questions
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What is the Senate Banking Committee's May 14 markup hearing for?
The committee will hold its markup hearing for the Digital Asset Market Clarity Act of 2025 on May 14 at 10:30 a.m., the key procedural step toward advancing the long-stalled crypto market structure bill out of committee and toward a full Senate vote.
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Why was the Clarity Act stalled since January?
The bill was largely in limbo after Coinbase CEO Brian Armstrong announced in January that the exchange was pulling its support over stablecoin yield and other provisions. Senators Thom Tillis and Angela Alsobrooks released a compromise text last week that addresses the yield issue.
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What does the Tillis-Alsobrooks compromise text do on stablecoin yield?
It would prohibit crypto companies from offering yield on static stablecoin reserve holdings while still allowing rewards for stablecoins involved in active protocol participation — a carve-out designed to resolve one of the central sticking points blocking the bill's advancement.
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What concerns do banking trade groups have with the current text?
A coalition including the American Bankers Association, Bank Policy Institute, Independent Community Bankers of America, National Bankers Association, and Consumer Bankers Association published a Friday letter saying "additional work is needed" and offering specific recommended edits to the compromise text.
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What other issues still need to be resolved before the bill can become law?
Senator Kirsten Gillibrand is pushing an ethics provision barring senior government officials from profiting off crypto while regulating it, backed by CoinDesk-commissioned polling showing 73% of registered voters support such a ban. The Senate Banking version will also need to be merged with the Senate Agriculture…
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