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The Senate Banking Committee is scheduled to mark up the Digital Asset Market Clarity Act on May 14, but ethics language remains one of the main unresolved issues as lawmakers try to move the bill forward.
The markup would be a key step toward a Senate floor vote after delays over stablecoin rewards, DeFi oversight and conflict-of-interest rules.
309-Page CLARITY Draft Leaves Ethics Rules Unresolved
Reports said a revised 309-page draft released before the markup does not include ethics provisions covering crypto interests held by senior federal officials or their family members.
That keeps a politically sensitive dispute alive as Democrats and some Republicans push for stronger guardrails. The debate centers on whether senior government officials and their families should face limits on issuing, promoting or profiting from digital assets while Congress is writing crypto rules.
Tillis Warns Ethics Language Could Affect Support
Sen. Thom Tillis has warned that he could oppose the bill if it does not include clear ethics provisions. That raises the stakes because the bill still needs Republican unity and enough Democratic support to move forward.
Sen. Kirsten Gillibrand and other Democrats have also pushed for language that would bar senior officials from profiting from crypto. Outside advocacy groups are pressing the committee to add anti-corruption protections before the bill advances.
Stablecoin Rewards Compromise Revives Senate Talks
The ethics dispute remains one of the last major sticking points after lawmakers made progress on stablecoin rewards. Banking groups had pushed to block crypto firms from offering yield-like incentives that could compete with deposits.
Crypto firms argued that activity-based rewards should still be allowed. Recent reports said the revised bill would allow activity-based stablecoin rewards while banning passive yield for simply holding stablecoins. That compromise helped bring the bill back to the markup stage.
CLARITY Would Split SEC and CFTC Oversight
The CLARITY Act is meant to create a federal market structure framework for digital assets. It would clarify when digital assets fall under the Securities and Exchange Commission and when they should be treated as commodities under the Commodity Futures Trading Commission.
The crypto industry sees the bill as its best chance to reduce regulatory uncertainty in the United States. Treasury Secretary Scott Bessent has also urged Congress to pass the legislation, arguing that unclear rules have pushed digital asset development overseas.
May 14 Markup Tests Support for Crypto Bill
The May 14 markup will show whether lawmakers can move the bill forward while ethics language remains unresolved. For crypto firms, a successful markup would push comprehensive market structure legislation closer to the Senate floor.
If the ethics dispute blocks progress, it would raise fresh doubts about whether Congress can pass a crypto framework this year, even after progress on stablecoin rewards and regulatory jurisdiction.
