The Senate Banking Committee released a 309-page revised draft of the CLARITY Act on Tuesday, setting up negotiations ahead of Thursday’s markup. Lawmakers have until the end of business Wednesday to file amendments. The updated crypto market structure bill makes targeted changes to stablecoin yield rules, tokenized equity language, and protections for software developers.
Stablecoin compromise bans passive yield but keeps usage-based rewards
The new text includes the stablecoin yield compromise negotiated by Senators Thom Tillis and Angela Alsobrooks. Under that approach, passive yield payments would be banned, while customer incentives tied to platform activity and usage would still be allowed. That issue had become one of the most contested parts of earlier talks. Coinbase CEO Brian Armstrong had previously criticized the original markup draft over its stablecoin provisions.
Senator Tillis said the revised language is intended to give the market more regulatory certainty after extended discussions between banking groups and crypto industry representatives. The legislative text was introduced on May 12 by Senate Banking Committee Chairman Tim Scott, Senator Cynthia Lummis, and Tillis, following months of talks involving regulators, financial institutions, law enforcement agencies, and crypto firms.
Section 505 rewrite eases pressure around tokenized equities
Another major revision centers on Section 505, commonly described as the tokenization section. Armstrong had warned that the earlier wording could amount to a de facto ban on tokenized equities. The latest draft reportedly adjusts that language after discussions with major exchanges and other industry participants.
The revised wording now appears to have broader backing from crypto trading platforms. That shift suggests lawmakers responded, at least in part, to complaints that the previous language was too restrictive for tokenized stock activity.
Developer treatment changes while enforcement powers stay in place
The bill also updates Section 1960 language tied to software developers. Lawmakers reportedly reached a compromise meant to prevent developers from being automatically treated as money transmitters. For the industry, that point matters because it affects how developers of software tools and crypto infrastructure could be classified under federal rules.
At the same time, the draft keeps enforcement tools available for authorities pursuing illicit finance cases. Tim Scott said the legislation includes safeguards, investor protections, and anti-illicit finance measures while supporting digital asset innovation in the United States.
Housing measure appears inside the broader crypto bill
Pages 300 through 309 of the draft include the “Build Now Act,” a housing-focused provision aimed at encouraging local housing development programs. Its presence drew attention because the measure sits inside a broader crypto market structure bill.
Some ethics issues may still be unresolved. Earlier versions included only limited language on conflicts of interest, even as some committee Democrats reportedly pushed for tougher provisions. Whether that part changes again may become clearer once amendments are filed ahead of the markup.