On Thursday, May 14 at 10:30 a.m., the Senate Banking Committee is set to convene for a pivotal markup hearing concerning the much-anticipated Digital Asset Market Clarity Act of 2025, commonly referred to as the Clarity Act. This legislation has experienced significant delays, particularly after Coinbase CEO Brian Armstrong announced plans to withdraw the exchange’s support in January due to differing views on stablecoin yield and other critical provisions.

Following these developments, Senators Thom Tillis and Angela Alsobrooks proposed a revised compromise. The new text addresses the concerns around stablecoin yields by banning crypto firms from offering yield on static stablecoin reserve holdings, while still permitting rewards for stablecoins actively engaged in specific activities. This adjustment appears to resolve one of the major roadblocks that previously hindered the Act’s progress.

As of now, the committee has not publicly released the complete text of this updated legislation.

Despite the proposed changes, various banking industry groups have voiced their apprehensions regarding the compromise. A collective letter issued by several banking trade associations, including the American Bankers Association, Bank Policy Institute, Independent Community Bankers of America, National Bankers Association, and Consumer Bankers Association, stated that “additional work is needed to arrive at text that embraces the innovation represented by digital assets while also protecting consumers.” The letter outlines specific recommendations for amendments to the text released last week.

The scheduling of the markup hearing signals that lawmakers may be prepared to proceed with the current version of the Clarity Act, albeit in light of these concerns.

Furthermore, other pressing issues remain unresolved. Senator Kirsten Gillibrand, a longstanding advocate for the crypto industry, emphasized the need for an ethics provision within the Clarity Act. This provision would prohibit senior government officials from profiting from the crypto sector while simultaneously overseeing its regulation. In a press release on Thursday, her office reiterated this stance, referencing CoinDesk-commissioned polling data indicating that 73% of registered U.S. voters believe senior officials should not maintain business ties to the crypto industry.

However, it seems unlikely that this issue will be addressed in the Senate Banking Committee’s version of the bill. After the markup hearing, it will be necessary for the Senate to harmonize this version with that produced by the Senate Agriculture Committee before the overall Senate can cast a vote to advance the legislation.