US Clarity Act advances amid banking opposition and Senate warning of delay

The Digital Asset Market Clarity Act, often called the CLARITY Act, has moved through Congress, clearing the Senate Banking Committee on May 14, 2026, after the House passed it in July 2025. The legislation would split oversight of crypto assets between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), classifying most tokens as “digital commodities” under CFTC jurisdiction and reserving securities‑type tokens for the SEC. It also introduces strict reserve requirements for fiat‑backed stablecoins to boost transparency and consumer protection.

Banking leaders have pushed back. JPMorgan Chase CEO Jamie Dimon publicly called Coinbase CEO Brian Armstrong “full of sh*t” and warned that the bill’s allowance for stablecoin yields could let crypto firms operate like banks without comparable safeguards. Coinbase, in turn, has resisted banking pressure and continues to lobby for the bill’s passage.

Senator Cynthia Lummis (R‑WY) cautioned that any further delay could postpone comprehensive crypto regulation until 2030, leaving developers, investors and law‑enforcement without clear rules and risking U.S. competitiveness against China and Europe. She linked the act to consumer‑protection concerns, noting that a crypto‑exchange bankruptcy could leave customers without guaranteed asset recovery.

The bill’s progress has sparked market optimism; new tokens such as Pepeto cite the advancing regulatory framework as a catalyst for raising capital and pursuing listings. Overall, the CLARITY Act represents a pivotal attempt to resolve long‑standing regulatory uncertainty in the U.S. crypto sector.