Full story
Markup Looms May 14
Galaxy Digital says the CLARITY Act’s fate hinges on seven Democrats on the U.S. Senate Banking Committee as the bill enters markup this week, with the committee scheduled to consider it on Thursday, May 14.
“scheduled markup on Thursday, May 14”
Galaxy Digital, in a post on X, described Ruben Gallego and Angela Alsobrooks as “constructive/pro-framework” voices, while Mark Warner, Catherine Cortez Masto, Andy Kim, and Raphael Warnock were labeled “deal-maker/conditional,” and Lisa Blunt Rochester was tagged as “mixed.”
The crypto-focused firm argues that Democratic votes in markup would significantly raise the odds of advancing the legislation toward a Senate floor vote, where a 60-vote threshold is required.
The Senate Banking Committee has 24 members, including 13 Republicans and 11 Democrats, and at least half must support the measure for it to advance beyond committee.
Coinbase policy executive Kara Calvert said the measure would need at least 60 votes in the Senate and bipartisan backing to pass, framing the outcome as dependent on final text and vote timing.
Key Voices and Quotes
At the center of Galaxy Digital’s analysis are Democrats it characterizes as either pro-framework or conditional negotiators, with Mark Warner, Catherine Cortez Masto, Andy Kim, and Raphael Warnock described as “deal-maker/conditional” supporters who have shown receptiveness to a crypto framework.
Galaxy Digital also frames Lisa Blunt Rochester as a potential swing vote, labeling her “mixed,” and it predicts that Jack Reed, Elizabeth Warren, Tina Smith, and Chris Van Hollen will oppose the bill based on their earlier votes on the GENIUS Act.
Coinbase’s Kara Calvert told attendees at the Consensus 2026 conference that “You need a bipartisan bill,” while also tying passage to a minimum of 60 Senate votes.
On the stablecoin dispute, the compromise brokered by Republican Senator Thom Tillis and Democratic Senator Angela Alsobrooks would ban rewards on idle stablecoin holdings while allowing rewards tied to other activity, such as payments.
crypto.news reported that five major banking groups rejected the Tillis-Alsobrooks language days before the markup, arguing it leaves room for crypto firms to offer rewards that resemble deposit interest.
What’s at Stake Next
If the CLARITY Act clears the Senate Banking Committee, it would move to the Senate floor for debate and possible amendments before a final vote, with Galaxy Digital saying Democratic backing in markup would change the market’s reading of the bill’s odds.
“elevates the Commodities Futures Trading Commission to its expected role”
The bill is positioned as a federal market-structure framework for digital assets, aiming to define when crypto tokens fall under securities or commodities oversight and to set rules for custody and anti-money laundering controls.
Galaxy Digital’s analysis also points to the fragility of consensus, noting that the measure stalled in January after Coinbase withdrew its public support over concerns including open-source developer protections, a ban on stablecoin yields, and regulatory issues tied to decentralized finance, or DeFi.
CoinDesk reports that a Senate Agriculture Committee version of the crypto market structure bill would preserve legal protections for developers as long as they do not control clients’ assets and would elevate the Commodities Futures Trading Commission to its expected role as regulator of cash markets for tokens such as Bitcoin (BTC) $81,092.27 that are not financial securities.
TradingView frames the stablecoin rewards fight as the core of the divide, stating that the bill would ban passive yields on stablecoins while allowing rewards for specific actions such as payments or loyalty, leaving banks and crypto platforms still clashing over the future of digital yields.
