Senate Banking Panel Advances CLARITY Act 15-9

The Senate Banking Committee voted 15-9 on May 14, 2026 to advance the Digital Asset Market Clarity Act of 2025, known as the CLARITY Act. The bill aims to define which digital tokens and trading venues fall under SEC jurisdiction and which fall under the Commodity Futures Trading Commission.

The committee approved a revised Senate text that expands a January draft. Sponsors say the legislation is intended to set clearer rules for exchanges, trading platforms and token classification in the United States.

The updated bill includes a bipartisan compromise on stablecoin rewards that restricts passive, deposit-like yields on payment stablecoins while allowing certain transaction-based incentives under stricter oversight. It adds insider-trading prohibitions that would cover digital assets and creates an insolvency safe harbor that would let counterparties close out commodity-style positions and access collateral during bankruptcy, similar to protections for derivatives.

The text sets a general effective date of 360 days after enactment. Some provisions would take effect later if federal agencies require additional time for rulemaking.

The measure now moves to the full Senate. No official floor vote date has been set, but sponsors expect consideration in June. Senate rules mean final passage on the floor may require 60 votes. If the Senate approves the bill, its text would need to be reconciled with any House version and secure the president’s signature before becoming law.

Outstanding issues that could change the measure on the floor include the treatment of decentralized finance protocols, anti-money-laundering controls and the specific limits on agency rulemaking authority. Senate ethics rules and other procedural hurdles could affect timing and debate on those topics.

Markets responded to the committee vote with higher prices for major tokens. Bitcoin and Ethereum moved up, while trading and infrastructure tokens that are sensitive to regulatory clarity posted larger gains. Hyperliquid rose about 11%, and XDC and Canton advanced near 10% following the vote.

In a statement, Sen. Thom Tillis said, “I was proud to work with my colleagues on both sides of the aisle,” and noted more work remains as the bill moves to the Senate floor.

Negotiations on the CLARITY Act involved senators, regulators and industry stakeholders over the past months. Supporters say the bill would produce clearer regulatory outcomes for trading venues and token issuers. Critics have expressed concerns about the scope of oversight, consumer protections and allowed stablecoin activity.