The U.S. Senate Banking Committee has released another draft of the cryptocurrency regulation bill. However, the current version of the CLARITY Act does not address the conflict of interest involving current officials.
Committee Chairman Tim Scott described the document as the result of "good faith efforts." He stated that it will protect consumers and aid in combating illegal financing.
The bill maintains legal security for DeFi protocol developers, ensuring they are not classified as payment service providers unless they directly control users' funds.
It includes restrictions for stablecoins, prohibiting issuers from paying interest or yields that make "stable coins" resemble bank deposits. Coinbase CEO Brian Armstrong referred to these conditions as a compromise.
Going live now for Brian’s AMA.https://t.co/5Q2vS9hBwN
— Coinbase 🛡️ (@coinbase) May 11, 2026
The main contentious issue remains the section on conflicts of interest. Democrats are calling for a ban on officials profiting from crypto assets. Senator Elizabeth Warren pointed out that President Donald Trump's family earned $1.4 billion from crypto transactions, necessitating legislative restrictions.
Previously, Democrats proposed amendments to prohibit the president, vice president, lawmakers, and federal officials from engaging in certain transactions involving digital assets. These were not included in the final document. The Banking Committee Chairman emphasized that this issue is outside his jurisdiction.
For the bill to pass, it must be approved by the committee during hearings on May 14. It will then be combined with the version from the Agriculture Committee. The Senate will require 60 votes for final approval. Officials aim to finalize the CLARITY Act by August.
Democratic representatives noted that without a compromise on ethical issues, the bill will not receive their support.
Recall that in April, Senator Thom Tillis mentioned the possibility of postponing the consideration of the CLARITY Act.
In early May, Tillis and Angela Olzbrooks reached a compromise regarding the yield of stablecoins in the bill.