Senate Unveils Revised Digital Asset Bill Ahead of August Deadline
The U.S. Senate Banking Committee released the updated Digital Asset Market CLARITY Act on Tuesday, May 12, 2023. The bill follows over a year of bipartisan talks and industry feedback, with key lawmakers now pushing for its passage by early August.
The latest draft includes major revisions, such as new definitions, insider trading rules, and adjustments to bankruptcy provisions. A committee markup session is set for Thursday, May 14, at 10:30 a.m. ET to review the proposed changes. Republican leaders—Chairman Tim Scott (R-SC), Subcommittee on Digital Assets Chair Cynthia Lummis (R-WY), and Senator Thom Tillis (R-NC)—jointly published the bill text alongside a detailed breakdown. Their release came as the White House signalled a July 4 signing target, though Senator Kirsten Gillibrand (D-NY) suggested the first week of August as a more likely timeline for final approval.
Industry reactions have been mixed. The DeFi Education Fund welcomed protections for developers and infrastructure providers, while Coinbase CEO Brian Armstrong confirmed collaboration with at least five major global banks for integration. Meanwhile, banking groups—including the American Bankers Association, Bank Policy Institute, and Independent Community Bankers of America—submitted a joint letter opposing the stablecoin yield compromise.
Senate Democrats have also weighed in. Ranking Member Elizabeth Warren (D-MA) issued a critical statement, highlighting ethics provisions as a top priority for her party. The updated draft reflects significant changes from the January version, with rewritten definitions, expanded SEC authorities, and a new section addressing insider trading. The bill now moves to the markup phase, where further debate and amendments are expected. If passed, the legislation would introduce sweeping changes to digital asset regulation, including stricter oversight and revised legal frameworks.
Lawmakers and industry stakeholders will closely monitor the committee’s next steps, with a final vote anticipated in the coming months.
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