Proposed U.S. legislation CLARITY Act aims to finally “sort out the rules” for crypto in one place, instead of leaving companies and investors guessing which old financial rules apply.

But the big question remains whether the crypto industry, which views it as a path to better regulation, and the banking sector, which perceives it as a threat to financial stability, will find common ground.

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The legislation is expected to spell out when a coin or token is treated more like a stock and when it is treated more like a commodity, and then tell you which regulator is in charge in each case.

• What Is the CLARITY Act? The US Crypto Bill That Could Reshape Digital Asset Regulation This Week

Right now, the bill is moving through the U.S. Senate but has not been approved yet, so nothing has changed in practice. A key Senate committee is about to hold a detailed review and vote, and only if the bill passes the full Senate, gets aligned with the House version, and is then signed by President Trump will it actually become law.

Voices from Wall Street to Web3

Coinbase CEO Brian Armstrong is firmly behind the latest version of the CLARITY Act, arguing that after key revisions it now offers the clear, comprehensive rules the crypto industry has long sought. He says the bill will modernize America’s financial plumbing by making payments and market infrastructure faster, cheaper and more accessible, while anchoring innovation in the United States rather than overseas.

“The bill is strong. It will benefit the American people by making the US financial system faster, cheaper and more accessible. It will also ensure that the US leads in the global race to build the next generation of our financial system.”

CLARITY is closer than ever.

The bill is strong. It will benefit the American people by making the US financial system faster, cheaper and more accessible. It will also ensure that the US leads in the global race to build the next generation of our financial system.

Huge thank… pic.twitter.com/mt8lkJ4W3v

— Brian Armstrong (@brian_armstrong) May 13, 2026

Another industry heavyweight Brad Garlinghouse has used X to present the Clarity Act as a way to protect consumers and bring order to US crypto rules. He has said the fight over the bill is really about what best serves ordinary Americans, and he has pushed back against moves to slow it down in the Senate.

Earlier this year, he called the Scott-backed Senate proposal a big step forward, arguing that clear rules are better than confusion and that crypto will benefit if the bill passes, while adding that lawmakers can sort out the remaining disagreements during the markup stage.

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“While long-overdue, this move by @SenatorTimScott and @BankingGOPon market structure is a massive step forward in providing workable frameworks for crypto, while continuing to protect consumers. Ripple (and I) know firsthand that clarity beats chaos, and this bill’s success is crypto’s success.”

While long-overdue, this move by @SenatorTimScott and @BankingGOP on market structure is a massive step forward in providing workable frameworks for crypto, while continuing to protect consumers. Ripple (and I) know firsthand that clarity beats chaos, and this bill’s success is… https://t.co/EWcml1NpBE

— Brad Garlinghouse (@bgarlinghouse) January 14, 2026

Nilmini Rubin, CPO of Hedera, told Finance Magnates that tokenized markets have matured to a point where the U.S. must focus on how—not whether—to regulate them. She highlighted that clear and consistent rules around stablecoins and tokenized systems are crucial to fostering trustworthy, scalable innovation, attracting investment, and ensuring leadership in the future of global financial infrastructure.

“Clear rules around stablecoin exchange and tokenized rails can help ensure that innovation develops within accountable frameworks rather than fragmented systems. The jurisdictions that provide regulatory certainty, operational clarity, and trusted standards will shape where the next generation of financial infrastructure is built, financed, and scaled.”

“Regulatory certainty allows responsible builders, financial institutions, and enterprises to invest in the secure and trusted infrastructure needed to support long-term American leadership in digital assets. As stablecoins and tokenized money evolve, interoperability and clear rules governing how value moves across networks will be essential to enabling scalable adoption and healthy liquidity flows."

From a retail trading infrastructure perspective, regulatory clarity on digital assets is critically needed. The Clarity Act addresses this by removing the ambiguity that has prevented institutional and retail platforms from confidently offering crypto-related products.

“The Clarity Act matters because ambiguity has been the single biggest blocker for institutional and retail platforms looking to offer crypto-adjacent products with confidence. Clear definitions of what qualifies as a commodity versus a security removes that uncertainty and opens the door for compliant innovation at scale,” Tom McManus, the Founder of TradeRisk Futures, commented for Finance Magnates.

From Capitol Hill: Why Crypto Needs Clear Guardrails

In the political space, Senator Tim Scott, a key US Republican voice on financial regulation and digital asset policy, emphasized the need for a clearer regulatory framework for cryptocurrencies, arguing that households, entrepreneurs, and market participants require well-defined rules to operate confidently.

He pointed to the Senate’s version of the CLARITY Act as a step toward establishing legal certainty, enhancing investor protections, and reinforcing oversight, while also supporting broader economic participation and addressing national security considerations tied to the digital asset ecosystem.

“Families, small businesses, investors, and innovators deserve clear rules of the road for digital assets. The Senate’s version of the CLARITY Act delivers certainty, safeguards, and accountability, while protecting Main Street, strengthening national security, and keeping.

Banks Push for Tighter Rules

But not everyone is happy. A high-stakes clash over the future of digital dollars is unfolding in Washington, as banks ramp up pressure on lawmakers just days before a crucial vote that could reshape how money moves across the US financial system.

The American Bankers Association has stepped up its campaign against parts of the Digital Asset Market Clarity Act, urging senators to impose stricter limits on stablecoins. The group warned that the latest draft still allows crypto firms to offer rewards that resemble interest, which could attract funds away from traditional bank deposits.

Keep reading: What Is the CLARITY Act? The US Crypto Bill That Could Reshape Digital Asset Regulation This Week

American Bankers Association CEO Rob Nichols has called on U.S. bank chiefs to push back against the CLARITY Act’s stablecoin yield provisions ahead of Thursday’s Senate markup.

“The current version of the legislation, although improved from an earlier version, still does not adequately prevent crypto companies from offering interest-like rewards on payment stablecoins. Without additional charges, we believe the current proposal would unnecessarily incentivize the fight of bank deposits into payment stablecoins, putting both economic growth and financial stability at risk,” the letter read in part.

BANKING LOBBY MOUNTS SUNDAY BLITZ TO KILL CLARITY ACT STABLECOIN COMPROMISE

American Bankers Association CEO Rob Nichols (@BankersPrez) emailed every member bank CEO in the country on Mother's Day, urging "immediate engagement" against the CLARITY Act's stablecoin yield… pic.twitter.com/6uoQ26pct8

— BSCN (@BSCNews) May 11, 2026

Senator Bernie Moreno says the “banking cartel is in full panic mode” over the crypto-focused Clarity Act, accusing big banks of treating customer deposits like a “personal piggy bank” for years while returning little to savers and profiting from loans and bonuses.

The CLARITY Act is scheduled for a key Senate Banking Committee markup and vote on May 14, but a date for a full Senate floor vote has not yet been formally set. Lawmakers have only signaled that they hope to move it sometime later in the summer.