The Senate Banking Committee launched the complete 309-page textual content of the CLARITY Act simply after midnight on Tuesday, Might 12, 2026, forward of a committee markup that would advance probably the most complete crypto market construction laws the U.S. has ever tried.
The invoice was launched by Chairman Tim Scott, Senator Cynthia Lummis, and Senator Thom Tillis, and displays months of bipartisan negotiations with lawmakers, regulators, monetary establishments, and client advocates.
What the invoice requires
The headline provision is a 1:1 reserve mandate requiring all cost stablecoin issuers to carry high-quality liquid property in opposition to each token in circulation.
Qualifying reserve property are restricted to short-duration U.S. Treasuries below 90 days, in a single day repurchase agreements, and central financial institution deposits — a tighter composition requirement than present market observe.
Tether’s USDT reserve disclosures have traditionally included company paper, cash market funds, and secured loans, none of which might qualify below this framework.
Circle’s USDC, in contrast, has already shifted towards short-duration Treasuries and money, positioning it nearer to compliance than its largest competitor.
SEC vs. CFTC jurisdiction
The invoice attracts a tough jurisdictional line between the SEC and CFTC, assigning oversight based mostly on whether or not a token capabilities as a safety with ongoing management-led revenue expectations or as a digital commodity inside a decentralized protocol.
That division has been absent from U.S. regulation since bitcoin’s creation, and its absence has been the only largest barrier to institutional custody approvals at regulated fiduciaries.
Coinbase CEO Brian Armstrong mentioned publicly that:
“Not everybody acquired all the pieces they wished, however they acquired the must-haves.”
Opposition and the trail ahead
The American Bankers Affiliation escalated its lobbying over the weekend, warning senators that yield-bearing stablecoins may drain insured deposits and destabilize mortgage funding.
Senator Elizabeth Warren argued the invoice “stunningly consists of zero provisions” to deal with conflicts of curiosity, pointing to what she described as $1.4 billion in crypto positive aspects by Trump and his household.
Sixty votes are required for Senate passage, which means significant Democratic help is required.
Chairman Scott said the invoice “places shoppers first, combats illicit finance, cracks down on criminals and overseas adversaries, and retains the way forward for finance right here in the US.”
White Home adviser Patrick Witt has set July 4 because the administration’s goal for passage, whereas Senator Kirsten Gillibrand has predicted the primary week of August.