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Now attention has shifted to the next major bill<\/a>, i.e., the Digital Asset Market Clarity (CLARITY) Act, which covers the broader market structure for crypto assets beyond stablecoins. Schumer\u2019s choice words in \u201cgood crypto bill\u201d may carry a pointed qualifier given that the Democratic party\u2019s resistance to the CLARITY Act has increasingly centered on an ethics provision that would bar senior government officials, including the president<\/a>, from profiting off crypto markets while regulating the industry.<\/p>\n That provision was removed from the May 2026 draft of the bill, drawing swift pushback from Democratic senators who say the bill is \u201cdead on arrival\u201d without it. Senator Kirsten Gillibrand, one of the GENIUS Act\u2019s original architects, has stated CLARITY cannot advance without such a safeguard.<\/p>\n This tension reflects a broader dynamic, given that the crypto<\/a> industry has backed the yield compromise in the bill, which bans yield on stablecoins<\/a> equivalent to bank deposits but allows \u201cbona fide activities.\u201d Even then, the ethics question remains unresolved. Coinbase and Circle both urged the Senate Banking Committee to advance CLARITY after the yield deal was struck.<\/p>\n WHY IT MATTERS <\/p>\n The CLARITY Act would establish a comprehensive regulatory framework for the broader crypto<\/a> market, addressing which tokens qualify as securities versus commodities and which regulators, the SEC or the CFTC, have jurisdiction. For exchanges, projects, and institutional players operating in the U.S., the law would be transformational.<\/p>\n