US Senate Banking Committee Passes Milestone 'CLARITY Act' for Digital Asset Market, Expected to Resolve Regulatory Uncertainty

On May 14, 2026, the U.S. Senate Banking Committee voted to send the 'Digital Asset Market CLARITY Act' to the Senate floor to ensure clarity in the digital asset market. This vote, following months of procedural delays and intense lobbying, is considered the most significant legislative progress for the cryptocurrency industry in years. In particular, this bill has the potential to end the long-standing jurisdictional battle between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).

The committee markup session, which began at 10:30 AM ET on May 14, proceeded under heavy tension. Lawmakers reviewed and debated over 100 amendments, including those concerning ethics rules and market structure. Despite the submission of numerous amendments, the committee successfully passed the bill, taking a decisive step toward legislation.

It is a significant step forward in providing the clear rules the digital asset industry needs.

The CLARITY Act first gained attention after being introduced in the House as 'H.R. 3633' in May 2025 and passing the full House in July 2025. Senator Tim Scott, Chairman of the Senate Banking Committee, originally aimed for a floor vote by September 2025, but the schedule faced procedural difficulties, delaying it until late 2025. The committee's passage on May 14, 2026, is recorded as an achievement that finally broke this long-term deadlock.

Establishment of Regulatory Boundaries and Institutional Jurisdiction

The bill clearly defines and distinguishes digital assets into 'Ancillary Assets' and 'Digital Commodities.' Ancillary assets are defined as network tokens whose value depends on entrepreneurial efforts and will be subject to semi-annual disclosure obligations under the supervision of the SEC. On the other hand, digital commodities, which derive value from the blockchain technology itself, will be classified under the jurisdiction of the CFTC, with regulations applied to exchanges and brokers.

• Strengthening Section 102 disclosure requirements for ancillary assets and specifying SEC oversight authority.
• Establishing a CFTC regulatory framework for digital commodity exchanges, brokers, and dealers.
• Clear separation of jurisdiction between the SEC and CFTC based on the nature of network tokens.

As the legislative process progressed, data from the prediction market Polymarket also reacted sensitively. The probability of the bill passing within 2026 reached nearly 80% in early May when a compromise regarding stablecoins was reached, but it dropped to 62% just before the vote due to intense lobbying pressure from the banking sector. However, immediately after news of the committee's approval broke, the probability rebounded to 73%, reflecting positive market expectations.

Despite this legislative upheaval, the price of Bitcoin showed a relatively calm reaction. During the markup session on May 14, the Bitcoin price remained stable without significant fluctuations, appearing 'unstirred.' Market experts analyzed that the possibility of committee passage had already been largely priced in, or that investors were cautiously watching the remaining procedures until final legislation.

Political Friction and Stakeholder Conflict

During the process of advancing the bill, opposition from the banking sector acted as one of the largest political variables. Banking lobby groups have consistently raised concerns that a new regulatory framework for digital assets could undermine the stability of the existing financial system, attempting to check the legislation. Chairman Tim Scott focused on defending against this negative public opinion and the onslaught of over 100 amendments while maintaining the core content of the bill.

Industry leaders, including Coinbase CEO Brian Armstrong, expressed strong support for this passage. They emphasized that clear regulatory guidelines are essential for accelerating blockchain innovation within the U.S. and preventing the exodus of companies overseas. Conversely, within the committee, voices calling for strengthening ethical standards and market structure transparency remained loud during the amendment discussions.

2026 Legislative Calendar and Future Outlook

The CLARITY Act, having passed the Senate Banking Committee, now faces its final hurdle: a vote on the Senate floor. The industry expects the momentum from this committee passage to carry through to the end of the year, leading to final enactment into law following the President's signature within 2026. Upon passing the full Senate, the U.S. will become one of the first major economies to have a comprehensive federal regulatory framework for digital assets.

However, variables remain until final passage, as additional amendments may be submitted or disagreements between parties may need to be reconciled during the floor process. Experts evaluate that this legislative attempt is highly significant in that it has laid the legal foundation to remove uncertainty in U.S. digital asset regulation and encourage innovation.