A360
Key Takeaways✦ Atlas AI
01
Senate committee to review crypto bill.
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Bill defines crypto asset classifications.
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Stablecoin reward rules cause industry dispute.
Atlas AI
The U.S. Senate Banking Committee is scheduled to review the “Clarity Act,” a proposal that would set a regulatory framework for cryptocurrency in the United States, during an executive session on May 14, 2026, in Washington, D.C.
The bill would aim to clarify which U.S. financial regulators oversee different types of digital assets and to define when crypto tokens should be treated as securities, commodities, or another category—an issue the industry has long said is necessary to provide greater legal certainty.
Stablecoin rewards provision
The legislation includes language addressing a long-running dispute between crypto firms and the banking industry over dollar-backed stablecoins.
Under a compromise brokered by Republican Senator Thom Tillis and Democratic Senator Angela Alsobrooks, customer rewards on idle holdings of dollar-backed stablecoins would be prohibited, on the grounds that such rewards resemble interest paid on bank deposits.
The bill would still allow rewards tied to other stablecoin-related activity, such as sending a payment.
Political hurdles
Banking trade groups argue the provision gives crypto companies too much latitude and could shisources deposits away from the regulated banking system. Crypto companies counter that banning interest payments on stablecoins would be anti-competitive.
The House of Representatives passed its version of the Clarity Act in July 2025. The Senate would need to pass the bill by the end of 2026 for it to be sent to President Donald Trump.
The legislation would need support from at least seven Democrats in the full Senate to pass. Some Democrats have said the bill is too weak on anti-money laundering provisions and does not go far enough to prevent political officials from profiting from crypto ventures.
