The proposed CLARITY Act faces a critical test this week as the U.S. Senate Banking Committee schedules a markup session for May 14 at 10:30 a.m. ET. The vote will be the first committee-level decision on a comprehensive crypto market structure bill.
Hedge fund manager Mark Yusko voiced strong opposition, warning the legislation could create "walled gardens" run by major financial institutions rather than open decentralized systems. "The bill may consolidate power among large banks and top crypto exchanges while restricting participation from smaller players," Yusko said. He also argued the framework would entrench dollar-backed stablecoins tied to government debt and preserve existing spreads for traditional institutions. Yusko criticized accredited investor rules and stablecoin reward caps, suggesting the proposals favor incumbents over retail participants.
Polymarket Odds Jump to 75% for 2026 Enactment
Prediction market Polymarket now shows traders assigning a 75% probability that the CLARITY Act becomes law in 2026, up 10 percentage points. The bill gained momentum after a compromise on stablecoin yields between lawmakers, breaking months of procedural delays.
Several sticking points remain ahead of Thursday's markup. Banking industry groups push for last-minute language changes; Senator Kirsten Gillibrand warned no deal is possible without provisions banning crypto insider trading and addressing Trump-family ethics carve-outs. Debates also continue over decentralized finance (DeFi) oversight language and securing full Republican support.
CFTC Chair Urges Immediate Passage
CFTC Chair Mike Selig publicly called for the legislation's swift approval. If the committee passes the bill this week, it will move to a Senate floor vote as early as June. Market participants view the coming days as one of the most consequential periods for U.S. crypto regulation this year.