Senate Drops 309-Page CLARITY Act at Midnight — Stablecoin Reserves, SEC/CFTC Split, and the 60-Vote Hurdle That Decides Institutional…

The Senate Banking Committee released the full 309-page CLARITY Act text just after midnight on Tuesday, ahead of a Thursday committee hearing that could advance the most comprehensive U.S. crypto market-structure legislation ever attempted. The headline provision: a 1:1 reserve mandate restricting qualifying assets to short-duration Treasuries under 90 days, overnight repos, and central bank deposits — a tighter composition standard than current market practice. Tether's USDT, which has historically held corporate paper and secured loans, would face the sharpest compliance gap; Circle's USDC, already weighted toward short-duration Treasuries, is closer to the line.

The bill also draws a hard jurisdictional boundary between the SEC and CFTC based on whether a token functions as a security with ongoing management-led profit expectations or as a digital commodity inside a decentralized…