The Senate Banking Committee is scheduled to hold a crucial markup hearing for the Digital Asset Market Clarity Act of 2025, commonly referred to as the Clarity Act, on Thursday at 10:30 a.m. This hearing follows a period of uncertainty regarding the legislation, which came to a standstill earlier this year when Coinbase CEO Brian Armstrong announced that the cryptocurrency exchange would withdraw its support. The withdrawal stemmed from concerns over provisions related to stablecoin yield and other issues.
Recently, Senators Thom Tillis and Angela Alsobrooks introduced a compromise text aimed at addressing these yield concerns. The revised proposal seeks to prevent crypto companies from offering yield on static stablecoin reserve holdings while permitting rewards for stablecoins used in various activities. This adjustment appears to have addressed one of the primary sticking points that had hindered the bill’s progress.
However, as of now, the committee has not publicly released the full text of the updated legislation. Industry stakeholders, particularly from banking groups, have expressed their reservations about this compromise. A collective letter released by several banking trade associations, including the American Bankers Association and the Bank Policy Institute, emphasized that “additional work is needed to arrive at text that embraces the innovation represented by digital assets while also protecting consumers.” The letter included specific recommendations for revisions to the newly proposed provisions.
The scheduling of the markup hearing indicates that lawmakers are prepared to proceed with the current version of the text, seemingly in disregard of the banking sector’s concerns. Yet, several other significant issues remain unresolved. Senator Kirsten Gillibrand, a strong advocate for the crypto industry, highlighted the need for an ethics provision that would prevent senior government officials from profiting from the crypto sector while involved in its regulation. This concern was echoed in a press release from her office, referencing polling data that indicated 73% of registered U.S. voters believe officials should refrain from having business connections to the industry.
It remains uncertain whether this ethical consideration will be integrated into the Senate Banking Committee’s version of the bill. After the markup hearing, the Senate will need to reconcile this version with that presented by the Senate Agriculture Committee before a comprehensive vote can take place to advance the legislation.
