The US Senate has taken its most significant step yet toward comprehensive crypto regulation. The Digital Asset Market Clarity Act, known as the CLARITY Act, passed the Senate Banking Committee on May 14 by a bipartisan 15-9 vote. It now heads to the full Senate.
The 309-page bill assigns the SEC oversight of initial token offerings classified as digital asset securities. The CFTC will regulate spot trading of digital commodities, including tokens deemed sufficiently decentralized.
The legislation also targets stablecoins: issuers may offer transaction rewards but cannot provide bank-like deposit yields.
The bill includes a housing package called the “Build Now Act” to attract broader support. Senator Elizabeth Warren has raised concerns about consumer protection gaps, signaling likely amendments during floor debate. Grayscale estimates a 70 percent chance the bill becomes law this year.
For investors, the stablecoin provisions shift innovation toward payments rather than savings products, potentially disrupting existing yield-bearing DeFi protocols.