Senate Banking Committee to Review Digital Asset Market Transparency Act
The Senate Banking Committee is set to hold its much-anticipated markup hearing on the Digital Asset Market Transparency Act of 2025, often referred to as the Transparency Act, on Thursday, May 14th at 10:30 a.m.
The Clarity Act faced significant delays after Coinbase CEO Brian Armstrong revealed in January that the exchange would no longer support it due to concerns over stablecoin yields and several other provisions. Recently, Senators Thom Tillis and Angela Alsobrooks proposed a compromise regarding yields. This new approach would prevent crypto companies from offering yields on static stablecoin reserves, yet it would allow them to reward stablecoins for active engagement—effectively addressing a major roadblock for the legislation.
As of now, the committee has not made the full text of the revised bill available.
Several banking industry groups have expressed concerns about the compromise and intend to provide feedback. In a letter released last Friday, entities like the American Bankers Association and the Consumer Bankers Association emphasized that “more work is needed to arrive at a text that protects consumers while also considering the innovations presented by digital assets.”
The letter outlines suggestions and adjustments to the provisions discussed last week.
The scheduling of this markup hearing indicates that lawmakers are inclined to progress with the current version of the bill, despite the expressed concerns.
There remain other outstanding issues, as well. Senator Kirsten Gillibrand, a long-time proponent of the crypto sector, remarked to a Consensus Miami audience last week that the Clarity Act ought to include an ethics clause preventing government officials from profiting off the industry while also overseeing it. His office reaffirmed this stance in a press release, referencing polling data from CoinDesk which revealed that 73% of registered U.S. voters feel government officials shouldn’t have business relationships with the industry.
However, it’s uncertain if this aspect will be integrated into the Senate banking bill. Following the recent interest rate hike, the Senate will need to merge this bill with the version from the Senate Agriculture Committee before the full Senate votes on advancing it.
