The Senate unveils a new 309-page draft of the Clarity Act before the vote

US Senate Banking Committee He released a new draft of 309 pages of the Digital Asset Market Clarity Act, also known as the CLARITY Act, which paves the way for a pivotal vote on Thursday according to well-known cryptocurrency journalist Eleanor Therrett. Committee members now have until the end of business on Wednesday to submit any amendments before the start of executive session.

The release came after months of stalemate and last-minute negotiations. Industry stakeholders are closely watching and waiting to see whether Democrats will support the amended bill.

Stablecoin yield settlement addresses Coinbase CEO’s core concerns

In the new draft, the stablecoin yield settlement is negotiated by Republicans Senator Thom Tillis and Democratic Senator Angela Alsobrooks It is included. This provision was one of the main objections raised by Coinbase CEO Brian Armstrong. It even withdrew support for the native January codec due to the same issue.

Under the bipartisan agreement, stablecoin issuers cannot pay a negative yield on coins Stable coin Balances, meaning there will be no payouts just for holding dollar-backed crypto tokens. However, activity-based rewards (those linked to actual use of the platform, such as payments and transfers) are permitted.

This compromise addresses traditional banks’ concerns about migrating deposits to cryptocurrency platforms while maintaining room for innovation in rewarding user participation.

Section 505 markup language was moved after Exchange support

Another concern raised by Armstrong relates to Section 505, the so-called “coding section.” The original language allegedly would have created “a de facto ban on tokenized stocks,” according to Armstrong.

Industry reports indicate that this language has now been moved to a better position within the bill. Major cryptocurrency exchanges have endorsed the updated version, indicating growing industry support for the revised tokenization.

Tokenization is a process in which traditional financial assets such as stocks are converted into digital tokens on blockchain networks. This process also remains a hot topic in cryptocurrency regulations and this change addresses what many saw as an overly restrictive clause.

Balance protection of software developers with law enforcement

The new draft includes a compromise on the language of Section 1960, which determines whether software developers will be classified as money transmitters under federal laws. This section is part of the Blockchain Regulatory Certainty Act (BRCA), embedded in the broader CLARITY Act, and aims to draw a clear line between writing neutral code and running a financial business.

This compromise protects non-custodial software developers, wallet providers, and infrastructure operators from being automatically classified as money senders simply for building code that others may use in transactions.

At the same time, it still allows law enforcement to go after bad actors who intentionally support illegal activities such as money laundering or other crimes. Finding this balance has been one of the biggest challenges in the cryptocurrency industry.

Moral judgments remain unclear despite Democrats’ hesitation

The January version of the CLARITY Act said little about ethics and conflicts of interest. This was then something that became a concern for many Democrats, who believed that the bill needed stronger rules to prevent lawmakers and officials from unfairly benefiting from the cryptocurrency industry.

Senator Kirsten Gillibrand said explicitly that there would be no “Clarity Act without an ethics provision,” meaning she may not vote for the bill unless stronger ethics protections are included. Her position could also influence other Democrats whose support is needed for the bill to move forward.

Meanwhile, Republican Sen. Thom Tillis also warned that he might oppose the ethics bill language if it is not added before it leaves the committee stage. This shows that concerns about ethics are not limited to one political party.

So far, it remains unclear whether the new ethics rules will be added directly to the final version of the bill or will be introduced separately at a later stage. Since the outcome depends on Democratic support, this uncertainty increases tension and makes Thursday’s vote difficult to predict.

Surprising discovery: Housing bill hidden inside cryptocurrency legislation

Journalist Eleanor Teret highlighted that among pages 300-309 of the 309-page draft, something unexpected is mentioned. According to the post on

The BUILD Act now creates a first-of-its-kind federal pilot program that links a Community Development Block Grant. Cities that fail to increase homebuilding faster than the national average face a 10% drop in federal grant funding. These funds are redirected to cities that exceed the national average building rate, with the highest-growing municipalities receiving the largest shares.

The program gives urban areas two years to begin construction before HUD evaluates whether cities will benefit or face penalties. Cities with median home prices below the national average and those that declared disaster emergencies in the past year get exemptions.

The inclusion of a housing bill within a cryptographic framework is highly unusual and appears to be either an error in legislative wording or an unusual bill-linking tactic that has caught the attention of regulators.

Timeline and next steps

The May 14 tokenization session will be the Senate’s first formal debate on the rules for the cryptocurrency industry. During the meeting, lawmakers will discuss the changes to the law The law of clarity And vote on whether to proceed.

Even if the Senate Banking Committee approves the bill, it still faces several major steps before it becomes law. It must pass a full vote in the Senate, be consistent with other versions of the bill in the Senate and House, and ultimately receive the president’s signature. The White House reportedly wants to finalize the bill by July 4, increasing pressure on lawmakers to resolve differences quickly.

Cryptocurrency companies are watching the outcome closely because the bill could create the first clear nationwide rules for digital assets in US history. While some concerns from exchanges and banks have been resolved, uncertainty over ethics and conflict of interest rules remains a major issue. The next two days could decide whether the cryptocurrency industry will finally get regulatory clarity or face another delay.

Read also: What are the new AML rules for US stablecoins under the GENIUS Act