Senate Banking Committee Releases Clarity Act Text Ahead of Thursday Vote

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The U.S. Senate Banking Committee published the full text of the Clarity Act just after midnight Tuesday, releasing the 309-page crypto market structure bill ahead of a committee hearing scheduled for Thursday. 

Bill Text Confirms Contested Stablecoin Yield Language and DeFi Protections

The released text codifies two of the most closely watched provisions in months of negotiation. On stablecoins, the bill restricts the payment of interest or yield “solely in connection with the holding of payment stablecoins” or on a stablecoin balance “in a manner that is economically or functionally equivalent to the payment of interest or yield on an interest-bearing bank deposit.” In practical terms, the provision would prohibit stablecoin issuers from paying holders a return on their stablecoin balance in the way a savings account pays interest. 

On DeFi, the legislation retains language mirroring the Blockchain Regulatory Certainty Act, which shields software developers who do not control user funds from being classified as money transmitters. The DeFi Education Fund said through a spokesperson: 

“The most important provisions for developers and infrastructure providers, the BRCA and protections under the Exchange Act, are in this bill. We will monitor amendments this week and flag those that oppose the sector.” 

Ethics Conflict-of-Interest Provision Remains Absent From Current Draft

The bill does not include a conflict-of-interest provision addressing government officials profiting from the crypto industry, an omission that Democrats have publicly criticized. Senator Elizabeth Warren said in a statement:

“The bill puts investors, our national security and our entire financial system at risk. There are zero provisions to prevent crypto-related gains by the president and his family, who have made at least $1.4 billion in gains from crypto deals alone in the first year of the current administration.”

Senator Kirsten Gillibrand said last week at Consensus Miami 2026 that Democrats would not allow the bill to move without such a provision. White House crypto adviser Patrick Witt, speaking at the same event, said the administration’s position is to establish rules that apply “across the board, from the president all the way down to the brand new intern on Capitol Hill,” but would reject anything targeting a specific office or officeholder. The ethics provision falls outside the Banking Committee’s jurisdiction and would need to be added at a later stage.

Bank Lobbying Groups Push for Tighter Stablecoin Yield Restrictions Before Hearing 

Despite the stablecoin yield language appearing settled at the committee level, bank lobbying groups over the weekend urged their members to press lawmakers for further restrictions on stablecoin rewards programs before the hearing. 

Coinbase CEO Brian Armstrong, whose company has been publicly involved in stablecoin policy discussions, said during a live event on X on Monday that “not everyone got everything they wanted, but they got the must-haves,” and described his company as working with at least five of the largest global banks. 

Separately, a report published last week by Galaxy, a crypto-focused financial services firm, projected that trillions of dollars in foreign capital could flow into U.S. financial infrastructure through stablecoin adoption. The report stated: 

“A majority of stablecoin growth will originate offshore, meaning foreign capital will flow into U.S. banking infrastructure at a rate that materially exceeds any domestic deposit migration.” 

Punchbowl News also reported Monday that Senate lawmakers had reached an agreement to include provisions allowing prosecutors to pursue crypto-related money laundering under the Clarity Act.

Bill Faces Further Hurdles After Committee Vote, Including Senate Merger and 60-Vote Threshold

Committee Chairman Tim Scott said in a statement that the bill “puts consumers first, combats illicit finance, cracks down on criminals and foreign adversaries and keeps the future of finance here in the United States.” A committee approval, however, would leave several additional steps before the legislation could reach President Trump’s desk. 

The Clarity Act would need to be merged with a parallel version passed earlier by the Senate Agriculture Committee, and the conflict-of-interest provision would need to be resolved before the full Senate votes. A final Senate passage would require 60 votes. 

Witt said the administration is targeting a July 4 completion, while Senator Gillibrand predicted the bill would be finalized by the first week of August. For comparison, the GENIUS Act stablecoin bill passed the Senate last year 68-to-30, well above the 60-vote threshold the Clarity Act would also need to clear.