- The Clarity Act heads to a Senate floor markup on May 14th, as analysts are divided on whether the crypto market has already priced in the event.
Mark your calendars, the Clarity Act’s markup finally has a markup date after months of delay. However, the crypto community should prepare for upcoming volatility from the event.
New Markup Date for Clarity Act
The Senate Banking Committee, chaired by Senator Tim Scott (R-SC), announced that it will hold a Full Committee Executive Session at 10:30 AM (ET) on May 14th. The agenda focuses on the consideration of HR 3633, titled “Digital Asset Market Clarity Act of 2025,” otherwise known as the Clarity Act.
The markup follows the compromise between the banking and crypto sectors regarding stablecoin yields. The parties notably reached a deal barring stablecoin yields that are “economically or functionally equivalent” to interest payments on bank deposits. Meanwhile, the current language of the bill allows “activity-based rewards,” such as loyalty points, cashback, rebates, and others that don’t run counter to the aforementioned condition.
Not everyone is on board with the outcome, but those seeking to address the issue pragmatically have supported it. With the stablecoin yield compromise virtually a done deal, lawmakers are proceeding with the ethics, consumer protection, and illicit finance provisions of the legislation if it indeed makes it through the markup.
During the markup, the Banking Committee will vote on the bill’s text and proposed amendments. If it passes, it will be combined with the Senate Agriculture Committee’s version of the bill to harmonize their provision into a single bill for a full Senate floor vote.
The Agricultural Committee’s portion centers on reinforcing the Commodity Futures Trading Commission’s (CFTC) oversight of digital commodities, including their registration for spot markets.
Volatility Up Ahead
The consensus agrees that the Clarity Act marks a bullish event for the crypto industry. It aims to provide regulatory clarity and fill gaps left by the “Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act.”
The Clarity Act mainly addresses stablecoin yields, ethical standards for elected officials investing or interacting with crypto, consumer safeguards against market manipulation and unfair practices, and the use of crypto in illicit activities. White House adviser Patrick Witt also recently raised the possibility that the bill might pave the way for new tax rules on digital assets.
However, several analysts forecast a “sell the news” event on the day of the markup. This phenomenon occurs when investors buy an asset in anticipation of positive news, thereby driving its price up, only to sell once the news becomes official to lock in their profits. Others argue, though, that the market has already priced the event, likely negating dramatic spikes or slides in crypto values in the near term.
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