The US Senate Banking Committee is set to markup the Clarity Act on May 14, a bipartisan bill that would establish the first comprehensive regulatory framework for digital assets in the country.
The Clarity Act would define whether a digital token is a security or a commodity, finally answering which agency-the SEC or CFTC-gets to police it.
Stablecoin regulation is also on the table. Banks have been pushing to ban stablecoin rewards, arguing yield-bearing stablecoins undermine traditional deposits. Crypto firms view stablecoin yields as financial innovation.
The bill has bipartisan backing from Senators Cynthia Lummis and Thom Tillis. Public sentiment supports action: 52% of the general public backs the Clarity Act, while 70% believe immediate crypto regulations are necessary.
Analysts predict the Act could unlock between $3B and $5B in new investments within the cryptocurrency sector in the year following enactment.
The May 14 markup is just the first step. The bill still needs a full Senate vote, reconciliation with any House version, and a presidential signature.