Senate Banking Chair Tim Scott schedules Clarity Act markup for May advancement

Senate Banking Committee Chairman Tim Scott confirmed plans to hold a markup on the Digital Asset Market Clarity Act next week, advancing the Coinbase-backed legislation.

The announcement follows a bipartisan compromise by Senators Thom Tillis and Angela Alsobrooks resolving disputes over stablecoin yield provisions. Coinbase Chief Legal Officer Paul Grewal endorsed the agreement, calling it a balanced outcome preserving activity-based rewards.

Scott targets presidential signature by summer, citing White House involvement from Patrick Witt. The bill cleared the House in July 2025 with bipartisan support but stalled in the Senate over banking industry objections.

Key terms ban passive yields resembling bank deposits while allowing incentives tied to network engagement. The framework draws CFTC jurisdiction over digital commodities and spot markets, clarifying SEC overlaps.

Over 100 industry groups urged swift action, emphasizing institutional adoption needs. Treasury Secretary Scott Bessent publicly backed markup acceleration.

Prior delays stemmed from Coinbase CEO Brian Armstrong withdrawing support in January over perceived banking favoritism. Negotiations reinstated exchange backing after April text reviews.

The Clarity Act complements the GENIUS Act's stablecoin rules, enabling tokenized securities and DeFi integration. Provisions exempt non-custodial developers and set small transaction thresholds.

Ethics clauses addressing official crypto holdings cleared committee hurdles. Republicans secured removal of Democrat-proposed conflict provisions.

Markup requires simple majority; Republicans hold edge but seek Democratic votes for floor passage. Analysts project 60-vote threshold met via moderates.

Passage unlocks bank and treasury participation in crypto products. NYSE platforms prepare compliant listings.

White House digital asset council prioritizes mortgage and retirement tokenization. The push counters offshore migration risks.

Committee staff circulated final draft Friday. Public comments closed earlier amid high engagement.

Industry executives hailed momentum restoration. Blockchain Association confirmed durable compromises.

The development caps months of gridlock, positioning US leadership in digital finance.