CLARITY Act stalls as Senate staff haggle over stablecoin yield

The House passed its version in July 2025, 294-134. The Senate Banking Committee approved the bill on May 14, 2026, by a 15-9 vote. Only two Democrats on the committee voted in favor. That matters because Senate procedural rules require at least seven Democratic votes to overcome a filibuster.

Senate Banking Chair Tim Scott, Digital Assets Subcommittee Chair Cynthia Lummis, and Democratic Sens. Ruben Gallego and Angela Alsobrooks have been driving the negotiations. Bipartisan staff meetings have been taking place since at least December 2025, with the pace accelerating as the August recess approaches.

Prediction markets give the CLARITY Act roughly a 28-30% chance of becoming law. The banking industry's resistance, partisan divisions, and the 2026 midterm elections continue to complicate a final agreement. Senate leadership needs to flip at least five more Democratic votes to clear a filibuster.