Senate Banking Drops New 300-Page CLARITY Act Draft: What’s Changed Since January

The Senate Banking Committee released a 309-page text of the Digital Asset Market Clarity Act of 2025 (CLARITY Act), expanding the January 278-page draft.

The text arrives ahead of a key Thursday markup vote. Committee members have until tomorrow to submit amendments before the 10:30 AM ET executive session.

Follow us on X to get the latest news as it happens

What Changed in the Clarity Act Draft

The CLARITY Act cleared the House back in July 2025 with broad bipartisan backing and has since been working its way through extended Senate negotiations. The January text faced significant pushback and ultimately stalled, with the treatment of stablecoin yield emerging as a central sticking point. 

Then, earlier this month, Senators Thom Tillis and Angela Alsobrooks unveiled a bipartisan compromise on stablecoin rewards. The May rewrite preserves the nine-title structure but expands the bill by 31 pages. 

The Tillis-Alsobrooks compromise allows regulated stablecoin issuers to offer certain forms of yield or rewards, but under tighter limits and oversight designed to stop stablecoins from functioning like unregulated bank deposits or securities.

Section 404 now contains the Tillis-Alsobrooks compromise. The bill also adds a new Section 109 that applies insider trading laws.  

Another new addition is the Section 702 Insolvency Safe Harbor, which allows counterparties to close out digital commodity positions and access collateral outside standard bankruptcy proceedings (mirroring protections already available for conventional derivatives).

Section 906 Effective Date, which sets a general 360-day effective date after enactment, with rulemaking-dependent provisions taking effect either 360 days after enactment or 60 days after the final rule is published, whichever comes later.

“One interesting worth noting now is the inclusion of the Build Now Act (sec 904),” Alex Thorn, Head of Firmwide Research at Galaxy Digital, wrote.

Moreover, the bill includes substantial revisions to Title I (Sections 102, 104, and 108).

However, the bill, like its January counterpart, leaves ethics provisions as the remaining sticking point. Elizabeth Warren has stressed that ethics safeguards that would prevent senior government officials from financially benefiting from cryptocurrencies remain a priority.

Subscribe to our YouTube channel to watch leaders and journalists provide expert insights