The U.S. Senate Banking Committee's hearing on the Digital Asset Market Clarity Act, scheduled for May 14, 2026, is considering dozens of amendments, though most are unlikely to be adopted. The bill, which aims to establish a regulatory framework for digital assets, has drawn proposed changes from both Democratic and Republican senators. Key Democratic amendments include Senator Elizabeth Warren's proposals to prohibit political corruption in banking and restrict presidential involvement in crypto businesses, and Senator Jack Reed's efforts to eliminate protections for software developers and restrict stablecoin yields. Republican amendments include a ban on central bank digital currencies by Senator Bill Hagerty. Despite the flurry of amendments, the Republican majority is expected to advance the bill with minimal changes. The Clarity Act has been under negotiation for months and is seen as a critical piece of crypto legislation, potentially merging with a similar bill from the Senate Agriculture Committee. However, ethics provisions remain a contentious issue, with Democrats like Senator Kirsten Gillibrand insisting on conflict-of-interest rules regarding government officials and crypto. The bill needs 60 votes in the Senate and approval from the House, which passed a similar bill last year.

Key facts

• Dozens of amendments filed for Senate Banking Committee markup of Clarity Act.
• Democratic proposals include ethics rules, stablecoin restrictions, and developer safe harbors.
• Republican amendments include a ban on Fed-issued CBDC.
• Most amendments expected to fail; bill likely to advance with minimal changes.
• Bill needs 60 Senate votes and House approval; ethics provision remains contentious.