According to CoinDesk’s May 12 report, the U.S. Senate Banking Committee on Tuesday officially released the latest version of its cryptocurrency market structure bill, the “CLARITY Act.” The text totals 309 pages and is being prepared for the committee hearing and vote scheduled for May 14. In a statement, Committee Chair Tim Scott said the bill puts consumers first and ensures the future of finance remains in the United States.
Bill Core Provisions: Stablecoin Yield Limits and DeFi Protections
According to CoinDesk’s report, the latest version of the text includes the following core policy provisions:
Stablecoin yield rules: The bill limits interest or yield payments and allows only payments “related to holding payment-type stablecoins” or “economically or functionally equivalent to bank deposit interest or yield payments.” This provision has continued to face controversy in the industry and among banking industry lobbying efforts.
DeFi developer protections: The bill retains provisions consistent with the “Securing Regulatory Clarity for Digital Assets” (BRCA), protecting software developers that do not control users’ funds from being classified as money transmitters. A spokesperson for the DeFi Education Fund said: “We’re encouraged by the direction of the recent negotiations; BRCA and related protections under the Securities Exchange Act have been included in this bill.”
Coinbase CEO Brian Armstrong said in a live X platform broadcast on Monday: “Not everyone got everything they wanted, but they got the essential things.” Armstrong also said Coinbase is working with at least five of the world’s largest banks, aiming to help banks integrate cryptocurrencies.
Controversy Over Moral Provisions: Democrats Oppose and White House Position
According to CoinDesk’s report, the currently released text does not include a conflict-of-interest provision limiting government officials from profiting from the crypto industry. Because such provisions fall outside the jurisdiction of the Senate Banking Committee, the issue will need to be addressed separately in later legislative steps.
Senate Banking Committee top ranking member Elizabeth Warren, speaking at the time the text was released, said in a statement: “This bill puts investors, national security, and the entire financial system in danger, and will accelerate the corruption of Donald Trump in the cryptocurrency space. In just one year since the president and his family took office, they have reaped at least $1.4 billion in profits from cryptocurrency trading, yet this bill has no provisions to prevent this from happening.”
White House crypto adviser Patrick Tutt said the government’s position is to set comprehensive rules that apply to “everyone from the president to the congressional hill intern who just started,” but it refuses any provisions targeting specific roles or officials. Senator Kirsten Gillibrand previously said at the Miami Consensus 2026 conference that Democrats would not allow the bill to pass without moral provisions.
Next Legislative Steps and Timeline
According to CoinDesk’s report, after the bill passes the committee, it still needs to complete the following procedures: first, it must be merged with a similar version previously approved by the Senate Agriculture Committee; second, it must incorporate the still-controversial moral provisions; and finally, it must receive at least 60 votes in a full Senate vote to pass, which is expected to require support from a substantial number of Democratic senators.
The White House crypto adviser said the government’s goal is to complete the “CLARITY Act” by July 4. Senator Gillibrand, meanwhile, predicts the bill will be finished in the first week of August. According to a report by Punchbowl News on Monday, the Senate negotiating representatives have reached an agreement on the bill’s enforcement provisions, allowing prosecutors to pursue crypto money-laundering cases.
Frequently Asked Questions
When did the Senate Banking Committee release the latest version of the CLARITY Act, and what are the legislative steps on Thursday?
According to CoinDesk’s May 12, 2026 report, the committee officially released the 309-page bill text after midnight on Tuesday (May 12). The committee hearing and vote are scheduled for May 14, 2026 (Thursday).
What does the CLARITY Act’s stablecoin yield limit provision require?
According to CoinDesk’s report, the bill limits interest or yield payments and allows only payments “related to holding payment-type stablecoins” or “economically or functionally equivalent to bank deposit interest or yield payments.” This provision is one of the most controversial policy focal points currently.
What are the CLARITY Act’s next legislative steps and completion timeline?
According to CoinDesk’s report, after the bill passes the committee it must be merged with the Agriculture Committee’s version and the moral provisions issues must be addressed; the full Senate vote requires 60 votes; the White House targets July 4; and Senator Gillibrand predicts completion in the first week of August.
