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Clarity Act News Today: Thursday Markup Set but Democrat Votes Could Determine the Bill’s Fate

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The post Clarity Act News Today: Thursday Markup Set but Democrat Votes Could Determine the Bill’s Fate appeared first on Coinpedia Fintech News

The Senate Banking Committee has officially scheduled the CLARITY Act markup for Thursday May 14 at 10:30 AM EST. Senate Banking Chairman Tim Scott announced the date on Friday evening. According to a committee memo, the final legislative text is expected to be released Monday with senators required to submit amendments before close of business Tuesday.

The vote comes nearly four months after the first Senate Banking markup was scrapped in January over last-minute objections from industry leaders including Coinbase CEO Brian Armstrong, who argued the bill deferred too much to banks and could effectively eliminate stablecoin rewards programs for consumers. 

The Banking Lobby’s Last Stand

Not everyone is satisfied. Banking trade groups sent a letter to Senate Banking leadership on Friday arguing the current stablecoin yield compromise still leaves room for rewards programs that could replicate interest. The groups want further revisions to prevent stablecoins from functioning like interest-bearing bank accounts.

Over the weekend, American Bankers Association president Rob Nichols sent a direct email to member bank CEOs urging immediate action. He encouraged them to call Senate offices, mobilise employees, and submit letters through an online advocacy portal ahead of Thursday’s vote.

A Senate aide who reviewed the letter described the effort to Crypto In America as “pretty milquetoast,” noting lawmakers on both sides have largely moved on to resolving ethics provisions rather than revisiting the yield debate.

The Democrat Question

The bigger unknown heading into Thursday is whether any Democrats on the committee will vote yes.

Senators Adam Schiff and Ruben Gallego have been leading the charge on ethics provisions targeting conflicts of interest related to President Trump and his family’s crypto dealings. Schiff is described as particularly firm on the issue. Gallego has been a broader advocate for advancing the bill but his final vote remains unclear.

Senator Mark Warner, another key DeFi negotiator, will also be one to watch closely on Thursday.

Why It Matters

The bill can advance out of committee on a purely partisan vote. But that path carries risk. Galaxy Digital’s head of firmwide research Alex Thorn told Crypto In America that a strictly Republican committee vote would likely make it harder to secure the 60 votes needed for full Senate passage.

“While it’s possible the bill could still succeed if it advances through Senate Banking on a partisan basis, the odds of ultimate Senate passage are certainly diminished if no Democrats vote in favour during committee markup on Thursday,” Thorn said.

Others remain less concerned, pointing to the bipartisan momentum that has kept the bill alive through multiple near-collapses.

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