The Digital Asset Market Clarity (CLARITY) Act will enter a key markup stage this Thursday, with the US Senate Banking Committee scheduled to vote on the legislative proposal. The CLARITY Act, formally known as HR 3633, would clarify the legal and regulatory status of prediction markets and crypto exchanges that offer their services to customers within the United States.
READ: HR 3633 Digital Asset Market Clarity Act of 2025 (full text)
The legislation, which passed a House vote in July 2025, is seen as pivotal for proponents of prediction markets and crypto exchanges. The bill formally establishes the Commodity Futures Trading Commission (CFTC) as the primary regulator of “digital commodities transactions, including digital commodity exchanges, brokers, and dealers.”
The CLARITY Act was responsible for the first analyst question (asked by James Yarrow of Goldman Sachs) during last week’s Coinbase Q1-2026 earnings call (view 21:52 timestamp). Coinbase Chief Legal Officer Paul Grewal replied that the company is “confident that the bill is going to head to markup this month – with a floor vote to follow in early summer.”
Grewal, who moderated a segment at the recent Bitcoin Conference Las Vegas, added that Coinbase expects to see a “signed piece of legislation” by September. Citing new language that protects stablecoin rewards, the former US magistrate judge said the bill’s “preservation of activity-based rewards” is a satisfactory approach for the exchange.
Pennsylvania Senator Dave McCormick appeared on FOX Business Monday to discuss the upcoming US Senate Banking Committee vote.
SOURCE: US Senator Dave McCormick, official X account (May 11, 2026)
McCormick believes a bipartisan agreement on the bill is “very necessary to ensure consumer protections; to ensure certainty for an industry that’s burgeoning. We want to make sure it happens here in America – not offshore.”
Last week, Patrick Witt, the executive director for the President’s Council of Advisors for Digital Assets made headlines during his scheduled discussion at Consensus Miami 2026. According to Witt, a major announcement on a national Bitcoin Strategic Reserve could be forthcoming in “weeks,” which sent the accounts of crypto components on social media and YouTube into a frenzy.
Included in Witt’s comments was a statement that the signing of the CLARITY Act “would be a tremendous birthday present for America, celebrating our 250th.” The remark was a reference to the July 4th Independence Day marking the 250-year anniversary of the Declaration of Independence’s adoption in Philadelphia.
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