CLARITY Act New Update: Senate Banking Committee Reportedly Targets May 14 Vote

The CLARITY Act is moving faster than expected. The Senate Banking Committee is preparing to vote on the landmark crypto regulation bill as early as May 14, according to multiple sources, who confirmed that draft legislative text has already been circulated to select industry participants.

Committee Chairman Tim Scott is aiming to complete markup before May 21, the start of the Memorial Day recess. The White House is targeting July 4, America’s 250th anniversary, for the President’s signature.

How It Got Here

The bill passed the full House in July 2025 with a strong bipartisan vote of 294 to 134. It then stalled in the Senate for months, primarily over disagreements on stablecoin yield provisions.

The breakthrough came on May 1 when Senators Thom Tillis and Angela Alsobrooks reached a bipartisan compromise. The deal bans passive yield on stablecoins, meaning simply holding USDC or USDT will not generate interest-like returns. However, activity-based rewards tied to actual transactions, trading volume, or platform use remain permitted.

What the Bill Would Do

The CLARITY Act would end the regulatory confusion that has defined US crypto policy for years. It would draw a clear boundary between SEC and CFTC jurisdiction over digital assets, establish a proper framework for exchanges and institutions, and move away from regulation through enforcement actions.

What Still Needs to Happen

A committee vote is not the finish line. If the Senate Banking Committee advances the bill, the full Senate must still vote on it. The Senate version would then need to be reconciled with the House version before reaching the President’s desk.

Some community members remain cautious. Users on social media pointed out that until the markup appears on the official Senate calendar, the timeline remains unconfirmed. “I want to see it on the calendar,” one user wrote directly.

Sources close to the process described the overall mood as positive, though some bracketed sections of the draft text are still being finalized with Democratic offices requesting additional edits ahead of the vote.