Senate Banking Committee Releases Full CLARITY Act Draft Ahead of May 14 Markup Vote

The Senate Banking Committee released the complete 309-page text of the CLARITY Act on May 12, setting the stage for a markup vote two days later. The draft contains provisions that would permanently exempt Bitcoin and Ethereum from securities law, a landmark shift in how the U.S. regulates digital assets.

The bill's release came with a manager's amendment that incorporates the Tillis-Alsobrooks stablecoin compromise and adds new sections on insider trading and the "Build Now Act." Amendments to the legislation are due by end of business Wednesday, May 13, giving committee members less than 24 hours to propose changes before Thursday's vote.

Senate Banking Committee Republicans defended the CLARITY Act against criticism that it would weaken securities law or create regulatory loopholes for illicit finance. The GOP contingent argued that the bill establishes clear frameworks for digital asset oversight rather than leaving the sector in regulatory limbo. The defense signals confidence ahead of the markup but also suggests pushback from securities regulators and investor protection advocates.

The permanent exemption of Bitcoin and Ethereum from securities classification addresses a decade-long source of regulatory uncertainty. These two assets have operated in a gray zone between commodity and securities classifications, with the SEC maintaining that most tokens constitute securities while Bitcoin and Ethereum have largely escaped formal designation. The CLARITY Act would resolve this ambiguity through legislation rather than litigation or regulatory guidance.

The stablecoin provisions in the manager's amendment reflect Congressional focus on digital currencies following the 2023 FTX collapse. The Tillis-Alsobrooks compromise attempts to establish clearer rules for stablecoin issuers and reserve requirements. This addition broadens the CLARITY Act beyond spot asset classification into the newer and more contentious territory of algorithmic and collateralized stablecoins.

Stand With Crypto announced plans to score recorded markup votes on the CLARITY Act, telling committee members that the advocacy group represents over 2.9 million U.S. advocates. The scorecard pressure is a direct signal to wavering senators that their votes will be tracked and reported to a constituency that prioritizes crypto-friendly policy. This tactic has proven effective in previous Congressional votes on digital asset issues.

The markup vote on May 14 will determine whether the CLARITY Act advances to the full Senate floor. Passage is not assured. Moderate Democrats and some Republicans concerned about investor protection or illicit finance risks may withhold support. The tight amendment deadline and GOP defense suggest the committee leadership expects a contentious markup, with members likely to propose competing versions of key provisions.

If the CLARITY Act passes committee and later the full Senate, it would represent the most significant U.S. crypto legislation to date. The permanent exemption of Bitcoin and Ethereum alone would remove years of regulatory uncertainty for the two largest cryptocurrencies by market capitalization. Combined with the stablecoin framework and insider trading provisions, the bill would create the first comprehensive federal digital asset regulatory regime.

The bill's fate in the House remains unclear. House leadership has not signaled support or opposition, and the chamber's more diverse political composition could produce different priorities. A Senate passage would put pressure on House Democrats to engage on crypto regulation, potentially forcing uncomfortable votes on digital asset policy before the 2026 midterms.

The May 14 markup will be closely watched by traders, project developers, and policy advocates. Bitcoin and Ethereum price movements have historically responded to favorable regulatory news, though the outcome of a single committee vote is unlikely to drive major market moves. The real significance lies in the precedent: a major committee advancing legislation that treats Bitcoin and Ethereum as non-securities, setting a template that other jurisdictions may follow.