WASHINGTON — The Senate Banking Committee is set to vote Thursday on a long-stalled cryptocurrency market structure bill that Coinbase CEO Brian Armstrong says could fundamentally rewire American finance. Armstrong declared the Digital Asset Market Clarity Act in "the best place we've seen so far" and pledged his company's full support for the legislation.
"This is a true compromise that balances the needs of the crypto industry with the interests of traditional banking," Armstrong told Fox Business on Wednesday. "We're ready to support a markup later this week."
Background: A Legislative Marathon
The CLARITY Act — formally H.R. 3633 — cleared the House of Representatives on July 17, 2025, in a bipartisan 294-134 vote. All 216 House Republicans supported the bill, joined by 78 Democrats.
Since then, the legislation stalled in the Senate Banking Committee through two cancelled markups, extended stablecoin negotiations, and an intensifying lobbying war. Committee Chairman Tim Scott has set a target of June or July 2026 for a full Senate floor vote, while the White House has marked July 4 as its goal for a presidential signature.
Key Provisions
- Regulatory Division: The CFTC would gain exclusive jurisdiction over spot and cash markets for digital commodities; the SEC retains authority over investment contract assets and primary market fundraising.
- Stablecoin Oversight: Stablecoins are carved out as a separate category under shared regulatory oversight.
- Expanded Scope: The Senate version includes nine titles covering decentralized finance protections, illicit finance provisions, bankruptcy safeguards for crypto customers, and the Blockchain Regulatory Certainty Act, which creates safe harbors for software developers who publish code without controlling customer funds.
The Stablecoin Standoff
The bill's most contested provision centers on stablecoin yield. Banks warned that permitting crypto platforms to pay rewards on stablecoin balances would trigger deposit flight from traditional financial institutions. Armstrong dismissed those fears, calling stablecoin yield "a logical evolution of digital money."
Industry analysts note that the compromise language in the Senate version may still change during Thursday's markup. "This is a moving target," said Jennifer Parker, a regulatory policy analyst at Blockchain Insights. "The stablecoin yield issue remains a flashpoint."
What This Means
If passed, the CLARITY Act would create the first comprehensive federal framework for digital assets in the United States. It would end the turf war between the SEC and CFTC by drawing a clear regulatory line, giving crypto companies and investors long-sought legal certainty.
For traditional banks, the bill could reshape competitive dynamics, especially around stablecoins. "This isn't just a crypto bill — it's a financial rearchitecture," Armstrong said. "It's about making the American financial system more inclusive, efficient, and innovative."
The Senate Banking Committee markup is scheduled for Thursday, May 14, at 10 a.m. Eastern. A full Senate vote is expected no earlier than mid-2026, but the Thursday vote marks the first formal committee action on the legislation in months.
This is a breaking news story. Updates will follow as the markup proceeds.