The CLARITY Act, also known as the Clarity of Digital Asset Market Law or the crypto market structure project, is advancing rapidly.
On May 14, the U.S. Senate Banking Committee will review and vote on legislation that has already passed the House with strong bipartisan support.
Highly anticipated by the industry, the proposal aims to provide clear "rules of the game" for digital assets and put an end to years of SEC regulation through enforcement.
It divides oversight between the SEC and the CFTC, treating tokens on "mature blockchains" that are sufficiently decentralized as digital commodities under CFTC jurisdiction.
Defines specific compliance rules for crypto intermediaries while protecting DeFi and non-custodial innovation.
A key clause prohibits platforms from paying U.S. users interest or yields simply for holding stablecoins—or rewards that function like bank deposit interest.
Usage-based incentives for payments and transfers remain allowed to avoid direct competition with traditional deposits. The crypto industry sees the proposal as a positive advancement.
It offers the much-anticipated regulatory certainty, reduces litigation risk, and should accelerate institutional adoption, the use of stablecoins in payments and DeFi, and the U.S.'s leadership in digital assets.
Smaller projects and yield-focused platforms may face higher compliance costs, but larger groups see the commitment as much better than the current uncertainty.
Resistance mainly comes from banking organizations, which argue that the language around stablecoins still has loopholes that could trigger deposit outflows and hurt lending. They continue to lobby for stricter rules.
Despite that, the proposal keeps a strong momentum and broad crypto backing. If the review goes well and the proposal becomes law, it will mark a historic shift towards a clear and innovation-friendly framework, unlocking significant long-term growth for the crypto ecosystem.
The vote on May 14 will be a key initial test.
