The Senate Banking Committee released the 309-page text of the Digital Asset Market Clarity Act of 2025 (CLARITY Act), expanding the January draft of 278 pages.
The text is presented ahead of a key review vote scheduled for Thursday. Committee members have until tomorrow to submit amendments before the executive session at 10:30 AM ET.
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What changed in the Clarity Act draft?
The CLARITY Act was passed in the House of Representatives in July 2025 with broad bipartisan support and has since been in prolonged negotiations in the Senate. The January text received significant backlash and ultimately stalled, with the treatment of stablecoin yields being a central point of disagreement.
Then, earlier this month, Senators Thom Tillis and Angela Alsobrooks introduced a bipartisan deal on stablecoin rewards. The May version maintains the structure of nine titles but expands the bill by 31 pages.
The Tillis-Alsobrooks agreement allows issuers of regulated stablecoins to offer certain types of yields or rewards, but under strict limits and oversight, aimed at preventing stablecoins from functioning as unregulated bank deposits or securities.
Section 404 now includes the Tillis-Alsobrooks agreement. The law also adds a new Section 109 that applies insider trading laws.
Another addition is Section 702 of Safe Harbor for Insolvency, allowing counterparts to close digital commodity positions and access collateral outside standard bankruptcy processes (similar to the protections already available for traditional derivatives).
Section 906 on the effective date states that the general law will apply 360 days after being enacted, although certain provisions that depend on rule-making will take effect 360 days after enactment or 60 days after the final rule is published, whichever is later.
«Something interesting to mention now is the inclusion of the Build Now Act (Section 904),» wrote Alex Thorn, Head of Research at Galaxy Digital, in a post.
Additionally, the bill includes significant revisions to Title I (Sections 102, 104, and 108).
However, the law, like its January version, leaves ethical provisions as the main sticking point. Elizabeth Warren has emphasized that ethical safeguards to prevent high-ranking government officials from financially benefiting from cryptocurrencies remain a priority.
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