Clarity Act News: Senate Releases 309-Page Draft Before Thursday Markup Vote

The U.S. Senate Banking Committee released a 309-page draft of the CLARITY Act ahead of Thursday’s scheduled markup session.

The proposal outlines a federal framework for crypto market structure, stablecoins, and digital asset oversight. Committee members now have until Wednesday’s close of business to submit amendments before formal debate begins.

Clarity Act News: Senate Panel Moves Crypto Bill Into Public View

Senate Banking Committee Chairman Tim Scott released the latest Clarity Act text ahead of this week’s committee hearing. The Clarity Act news gives lawmakers, industry groups, banks, and consumer advocates a detailed version of the bill before members begin formal debate and amendment work.

The draft follows months of private talks over how the United States should regulate crypto trading, stablecoins, and decentralized finance. Lawmakers have already reviewed earlier versions behind closed doors, while the public release now opens the language to wider scrutiny before the markup vote.

Scott said the Clarity Act news aims to deliver certainty, safeguards, and accountability for Americans. He also said the legislation will keep financial innovation in the United States while addressing illicit finance and consumer protection concerns.

Stablecoin Yield Language Remains Central

The draft includes language on stablecoin yield, one of the most-watched sections in the bill. The text restricts interest or yield paid only for holding payment stablecoins, including arrangements that function like interest on bank deposits.

Banking groups have warned that stablecoin reward programs could pull deposits away from regulated banks. Crypto firms, meanwhile, have pushed for room to offer activity-based rewards tied to payments, transfers, and platform use.

According to Polymarket data, the odds that the Clarity Act will be signed into law in 2026 have increased by 4% to 69%.

Coinbase CEO Brian Armstrong said during a live event on X that not all sides received every demand, but negotiators secured key priorities. He also said Coinbase wants to work with major banks as they integrate crypto services into their financial systems.

DeFi Protections Stay In Draft Text

The Clarity Act news also includes provisions tied to decentralized finance. The bill keeps language similar to the Blockchain Regulatory Certainty Act, which protects software developers who do not control customer funds from money transmitter treatment.

The draft attempts to draw a line between platforms that directly handle assets and software builders who publish code or operate non-custodial systems.

The DeFi Education Fund welcomed the direction of negotiations and pointed to protections under the Exchange Act. The group also said it would monitor amendments during the markup process and respond to changes that could affect developers or infrastructure providers.

Ethics Provision Still Awaits Resolution

The current Senate Banking draft does not include a conflict-of-interest section. That issue falls outside the panel’s jurisdiction, so lawmakers must add it later through another legislative route or broader negotiation.

Democrats have made the ethics provision a major condition for support. Senator Kirsten Gillibrand said last week that the bill cannot move without language addressing officials who profit from crypto activity while shaping policy.

Senator Elizabeth Warren also criticized the draft after its release. She said the bill lacks rules to prevent crypto-related conflicts involving public officials, and she tied that concern to President Donald Trump’s crypto business interests.

Senate Markup Vote Becomes Next Hurdle

Thursday’s markup will show how much support the Clarity Act has inside the Senate Banking Committee. Members can offer amendments before the vote, and those changes may reshape key sections on stablecoins, DeFi, enforcement, and ethics.

Even after committee action, the bill must clear more steps. Senate leaders need to combine the Banking Committee version with the Agriculture Committee’s related market structure work. A final Senate vote would also require 60 votes, meaning Democrats must support the bill in meaningful numbers.

The White House has reportedly pushed lawmakers to complete the legislation before July 4. However, the final timeline may depend on how aggressively amendments reshape the current draft during committee negotiations.