The US Senate Banking Committee will hold a markup vote on the Digital Asset Market Clarity Act on May 14, a significant move to establish a regulatory framework for digital assets after the bill stalled for months. The vote follows a breakthrough compromise on stablecoin regulation that regained the support of key industry players.
"It’s on like Donkey Kong," Paul Grewal, chief legal officer at Coinbase, said on X following the progress. Faryar Shirzad, the exchange's chief policy officer, called the scheduled markup a "big step forward," emphasizing that clear rules are essential for protecting consumers and ensuring crypto innovation develops in the US.
The bill's progress halted in January after Coinbase withdrew its endorsement, citing concerns over a ban on stablecoin yield, insufficient protections for open-source developers, and unclear rules for decentralized finance. A compromise negotiated last week by Senators Thom Tillis and Angela Alsobrooks, which allows yield on stablecoins used in active financial transactions but not on passive reserves, was enough to bring the exchange back onside.
At stake is the future of the crypto industry in the US. While the US dollar serves as the world's largest fiat on-ramp, accounting for over $2.4 trillion in volume between July 2024 and June 2025, the vast majority of trading occurs offshore. According to Coingecko data for 2025, US-based Coinbase held just 6.1 percent of market share, while Binance alone accounted for over 38 percent. Proponents argue the CLARITY Act could help "reshore" this activity by providing legal certainty.
Banking and Ethics Hurdles Remain
Not all parties are satisfied with the current text. A coalition of banking groups, including the American Bankers Association and the Bank Policy Institute, argued in a joint letter that "additional work is needed" and submitted recommendations for changes.
Separately, Senator Kirsten Gillibrand is advocating for ethics safeguards to be included in the bill. Citing polling data that shows 73 percent of registered US voters favor such rules, Gillibrand wants to prohibit senior government officials from profiting from the crypto industry while they hold regulatory authority over it. It is uncertain if this provision will be in the version of the bill marked up by the committee.
A Race Against the 60-Vote Clock
The bill's passage is far from guaranteed. Kara Calvert, Coinbase’s vice president of US policy, noted at the Consensus 2026 conference that the legislation will require at least 60 votes to pass the full Senate, necessitating bipartisan cooperation.
While a HarrisX poll from May shows that 52 percent of registered voters support the act across party lines, the legislative calendar presents a challenge. Bill Hughes, senior counsel at Consensys, warned that the window to pass the bill is "unforgiving" due to the upcoming midterm elections in November. He noted the Senate has only weeks to move the bill before the August recess, after which the campaign season will likely dominate the agenda.
This article is for informational purposes only and does not constitute investment advice.
