The US Senate Banking Committee has released a new draft of the cryptocurrency regulation bill. However, the current version of the CLARITY Act does not address the issue of conflicts of interest among current officials.
The committee’s chairman, Tim Scott, described the document as the result of “good faith work.” According to him, it will ensure consumer protection and aid in combating illicit finance.
The bill maintains legal security for developers of DeFi protocols. They will not be equated with payment service providers if they do not directly control users’ funds.
The document includes restrictions for stablecoins. Issuers are prohibited from paying interest or returns that make “stable coins” resemble bank deposits. Coinbase CEO Brian Armstrong called these conditions a compromise.
Going live now for Brian’s AMA.https://t.co/5Q2vS9hBwN
— Coinbase 🛡️ (@coinbase) May 11, 2026
The main contentious issue remains the section on conflicts of interest. Democrats demand a ban on officials profiting from crypto assets. According to Senator Elizabeth Warren, the family of US President Donald Trump earned $1.4 billion from crypto deals, necessitating legislative restrictions.
Previously, Democrats proposed amendments prohibiting the president, vice president, lawmakers, and federal officials from engaging in certain digital asset transactions. These were not included in the final document. The head of the Banking Committee emphasized that the issue is beyond his jurisdiction.
For the bill to pass, it must be approved by the committee at a hearing on May 14. It will then be combined with the version from the Agriculture Committee. Final approval in the Senate will require 60 votes. Officials plan to complete work on the CLARITY Act by August.
Democratic Party representatives noted that without a compromise on ethical issues, the bill will not receive their support.
In April, Senator Thom Tillis indicated a possible postponement of the CLARITY Act’s consideration.
In early May, Tillis and Angela Alsobrooks reached a compromise regarding the yield of “stable coins” in the bill.