After months of back and forth, the U.S. Clarity Act passed the Senate Banking Committee markup vote on May 14, clearing the most critical legislative hurdle in the bill's history by a vote of 15-9.
Democratic Senators Ruben Gallego of Arizona and Angela Alsobrooks of Maryland crossed party lines to join all 13 Republicans on the panel, giving the bill bipartisan support. The House passed its version of the crypto legislation last year with a 294-134 vote.
During the markup, senators debated, amended, and voted on whether to advance the bill to the full Senate floor. The bill now heads there for what will be its next major test.
The Clarity Act seeks to establish a clear regulatory structure for digital assets by defining which fall under the Securities and Exchange Commission (SEC) as securities and which fall under the Commodity Futures Trading Commission (CFTC) as commodities — ending years of jurisdictional ambiguity that has driven capital and talent out of the United States.
Avery Ching , CEO and Co-Founder of Aptos Labs , described the committee vote as a major step forward for the industry, adding that there's still a lot of important work to be done.
"There is still important work ahead to get the details right, but real momentum toward thoughtful, well-designed market structure legislation matters for our shared goal of keeping American blockchain innovation growing here at home,"Ching said.
Ching added that the broader issue extends beyond crypto markets alone.
"The next generation of financial infrastructure is already being built. The question is whether America creates the environment for that innovation to scale responsibly here."
One of its most debated provisions involved stablecoin yields, which reached a middle ground between the banking and crypto sectors.
The May 11 version prohibits returns on passive stablecoin holdings that resemble deposit interest, while permitting rewards tied to active use such as trading, transactions, or staking.
Ching said the stablecoin debate reflects broader questions around modernizing financial infrastructure. "These are not small questions, especially as digital dollars become a bigger part of payments and financial markets," he said.
"But the answer cannot be to slow down useful technology simply because it challenges older rails."
He added that stablecoins are already proving useful in real-world financial activity. "Stablecoins are already being used because they solve real problems in payments and settlement."
"The U.S. has an opportunity to bring the promise and power of stablecoins together with a sensible market structure framework, which will help move us toward our collective goal of making the U.S. the crypto capital of the world."
The bill also shields software developers from legal liability for illicit activity carried out by bad actors using their technology.
Related: LIVE: Clarity Act enters final stage after Senate Committee vote
Markets react
Crypto-linked equities caught a strong bid during market hours following the vote.
Coinbase (NASDAQ: COIN), the largest crypto exchange in the United States, jumped 9.10%. Circle (NYSE: CRCL), the issuer of the USDC stablecoin, was up 2.54%.
Strategy (NASDAQ: MSTR), the largest public Bitcoin holding company, rose 8.16%, while crypto exchange Robinhood (NASDAQ: HOOD) surged 6.16%.
Bitcoin climbed back to the $81,000 zone, jumping over 3.5% in the past 24 hours. At press time, it was trading at $81,965. Ethereum was up 2.8% at $2,315.
According to Ching, clearer rules could become a major driver of institutional participation in digital assets. "Clearer rules would give institutions more confidence to participate with real capital, not just small pilots or research teams," Ching said.
"It would also help keep more of that activity in the U.S., where it can develop under strong oversight."
More news:
-
Autheo launches quantum-proof mainnet as crypto braces for cryptographic threat
-
Bitcoin lagging gold is 'exciting,' says Anchorage head of research
Industry reaction
Miller Whitehouse-Levine, Founder and CEO of the Solana Policy Institute, called it a defining moment.
"The bill addresses the core issues that have kept businesses and institutions in regulatory limbo for years. It creates clear treatment for tokens and token fundraising, establishes a regulatory framework for digital asset exchanges, and directs federal agencies to build regulatory pathways for tokenized securities and on-chain futures markets."
Whitehouse-Levine added that the framework will "unleash developers and businesses building on and using public blockchains like Solana."
"Critically, the bill includes robust developer protections. Software developers are the engine of the Solana ecosystem and the architects of modern financial infrastructure. For too long, developers have faced legal uncertainty simply for writing code. This bill gives them the clarity they need to build in the United States rather than taking their talent and capital elsewhere."
Jeff Amico, COO of Gensyn, says:
"The CLARITY Act is exactly what the crypto industry needs. The current system is opaque and allows bad actors - from exchanges to token issuers - to take advantage of retail users. We've seen this up close at Gensyn, having just completed our token launch, and believe a disclosure framework like Clarity is necessary to rebuild trust. Serious teams are more than happy to comply with regulation like this, as it helps separate the good actors from bad"
Not everyone is celebrating
The bill is opposed by banks, labor unions, and law enforcement agencies that say various provisions could hurt consumers and endanger the financial system.
The AFL-CIO warned that the legislation could expose retirement savings to unregulated digital assets.
"We are deeply concerned that this bill will prompt a flood of digital assets into pension plans, retirement accounts, and our broader financial system under an ineffective regulatory system."
The Fraternal Order of Police raised concerns that the bill's developer protections could shield criminal activity from prosecution.
"Make no mistake, stripping law enforcement of its ability to track blockchain financial transactions would impede the work of our members in preventing criminals from profiting from their crimes."
Despite the opposition, the bill cleared committee with bipartisan support and now heads to the full Senate floor.
Related: Crypto and Blockchain Poised for Innovative Year Amid US Regulatory Clarity
This story was originally published by TheStreet on May 14, 2026, where it first appeared in the MARKETS section. Add TheStreet as a Preferred Source by clicking here.
