Clarity Act Unveiled as U.S. Senate Moves Closer to Crypto Market Rules

The U.S. Senate Banking Committee has officially released the latest version of the Clarity Act, a major crypto market structure bill that could shape how digital assets are regulated in the United States. The bill was published before a committee hearing scheduled for later this week, marking another step toward a clearer legal framework for the crypto industry.

Lawmakers say the legislation aims to provide stronger consumer protections, reduce illegal financial activity, and establish clearer rules for crypto businesses operating in the country. Senate Banking Committee Chairman Tim Scott described the proposal as an effort to bring “certainty, safeguards, and accountability” to the sector.

Stablecoin Yield Rules Remain a Major Debate

One of the most closely watched parts of the bill involves rules around stablecoin yield programs. The current draft limits interest or rewards offered simply for holding payment stablecoins, especially if those rewards resemble returns from traditional bank deposits.

This issue has created tension between crypto companies and banking groups, with some financial institutions arguing that stablecoin rewards could compete directly with traditional savings products.

DeFi Protections Included in Clarity Act

The bill also keeps protections for decentralized finance (DeFi) developers, preventing software builders who do not directly control user funds from being treated as money transmitters. Industry advocates view this as an important safeguard for blockchain innovation.

While the legislation is moving forward, lawmakers still need to settle issues around ethics rules and conflict-of-interest provisions before a final Senate vote. If approved, officials are aiming to finalize the bill by mid-to-late 2026.