US Senate CLARITY Act Vote Explained: Will The Act Pass On May 14?
Why Banks Oppose CLARITY Act Stablecoin Yield Rule Before May 14 Vote?
The U.S. Senate Banking Committee will review the CLARITY Act on May 14. The decision could shape the future of crypto regulation in America. Lawmakers, banks, crypto firms, and prediction markets now focus on one key question: Can the bill finally move to a Senate floor vote?
Why Is the CLARITY Act Suddenly Moving Again?
The Senate Banking Committee officially scheduled the long-awaited markup session for the Digital Asset Market Clarity Act, known as the CLARITY Act. The hearing will begin Thursday, May 14, at 10:30 a.m. ET.
The move ends months of delays in Washington. A compromise between Senators Thom Tillis and Angela Alsobrooks reportedly unlocked progress on stablecoin yield rules.
The CLARITY Act passed the House in 2025. The bill aims to split cryptocurrency oversight between the SEC and the CFTC. Under the proposal, securities-like tokens would fall under SEC control. Commodity-style digital assets would move under CFTC oversight. The legislation also includes:
DeFi safe harbor protections
Anti-CBDC provisions
Stablecoin framework rules
New cryptocurrency market structure guidelines
The supporters say the bill could finally replace years of enforcement-led regulation. Many firms argue that the current system lacks clear legal standards.
Senator Kirsten Gillibrand added pressure this week during Consensus. She warned there would be “no deal” without insider trading restrictions and Trump-family ethics provisions tied to activity. Meanwhile, CFTC Chair Mike Selig publicly called for “immediate passage” of the legislation.
Why Are Banks Fighting the Stablecoin Rules?
Banking groups continue pushing for last-minute changes before the markup vote. Several industry organizations want tighter limits on stablecoin yields.
The American Bankers Association reportedly fears yield-bearing stablecoins could pull deposits from traditional banks. Fewer deposits may reduce lending capacity across the banking sector. Many view the lobbying effort as an attempt to block competition from blockchain-based finance.
The influencers described the fight as “the banking cartel trying to stop cryptocurrency.” His X post included congressional footage and bill text connected to the ongoing Senate process.
There's a claim that President Donald Trump would not allow major banks to sabotage the legislation. The post referenced Trump’s earlier push to make the United States the “crypto capital of the world.” White House crypto adviser Patrick Witt also fueled optimism this week.
Disclaimer: This article is for informational purposes only. It does not provide financial, legal, or investment advice. Crypto markets remain volatile, and readers should conduct independent research before making decisions.
For More Updates - https://www.coingabbar.com/en/crypto-currency-news/us-senate-clarity-act-vote-may-14-2026-banks-stablecoin-rules
