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<ul>
 <li>Senate Banking Committee released the latest text of the U.S. crypto market structure bill ahead of a Thursday hearing.</li>
 <li>The 309-page legislation includes provisions on stablecoin yield restrictions and DeFi developer protections.</li>
 <li>An ethics provision tied to crypto-related conflicts of interest remains unresolved.</li>
 <li>The bill still requires committee approval, Senate negotiations, and at least 60 Senate votes for passage.</li>
 <li>White House officials and lawmakers continue discussions on crypto regulation and conflict-of-interest standards.</li>
</ul>
<h2 id="senate-banking-committee-releases-updated-crypto-market-structure-bill">Senate Banking Committee Releases Updated Crypto Market Structure Bill</h2>
The Senate Banking Committee released the latest version of the U.S. crypto market structure bill shortly after midnight on Tuesday ahead of a scheduled committee hearing later this week. The <a href="https://www.banking.senate.gov/imo/media/doc/ehf26374.pdf" rel="noopener noreferrer nofollow">309-page</a> legislation is designed to establish a regulatory framework for the crypto industry within the U.S. financial system. The latest version includes provisions related to stablecoin yield, decentralized finance (DeFi), consumer protections, and anti-money laundering measures.
Chairman Tim Scott said in the <a href="https://www.banking.senate.gov/newsroom/majority/chairman-scott-senators-lummis-tillis-release-market-structure-bill-text-ahead-of-banking-committee-markup" rel="noopener noreferrer nofollow">statement</a>:
<blockquote>
 “Over the past year, we have listened, negotiated, and strengthened this bill because families, small businesses, investors, and innovators all benefit from clear rules of the road.”
 “This bill reflects serious, good-faith work across the Committee and delivers the certainty, safeguards, and accountability Americans deserve.”
</blockquote>
The Senate Banking Committee also released a <a href="https://www.banking.senate.gov/imo/media/doc/section-by-section.pdf" rel="noopener noreferrer nofollow">section-by-section document</a> outlining the crypto market structure bill. The legislation still faces several procedural and political hurdles before it can reach President Donald Trump’s desk. Lawmakers must first secure committee approval before the bill can advance further in the Senate process.
<h2 id="ethics-provision-remains-under-negotiation">Ethics Provision Remains Under Negotiation</h2>
An ethics and conflict-of-interest provision tied to government officials’ involvement in the crypto industry has not yet been added to the legislation. The issue has become a major point of negotiation among lawmakers. Democrats have stated they will not support the bill without ethics-related language, while White House officials have opposed provisions that specifically target the president.
Senator Kirsten Gillibrand previously said Democrats would require such a section before allowing the legislation to move forward. <a href="https://cryip.co/us-strategic-bitcoin-reserve-announcement-expected-within-weeks-white-house-adviser-says/" rel="noopener noreferrer nofollow">White House crypto adviser Patrick Witt</a> stated that the administration supports rules that apply broadly across government positions rather than targeting a specific officeholder. Senator Elizabeth Warren criticized the current draft, stating that it lacks provisions aimed at preventing crypto-related conflicts of interest involving public officials. The ethics provision is expected to be addressed later in the legislative process because it does not fall under the Banking Committee’s jurisdiction.
<h2 id="stablecoin-yield-rules-and-defi-protections-included-in-bill">Stablecoin Yield Rules and DeFi Protections Included in Bill</h2>
The newly released text includes language restricting interest or yield payments connected solely to holding payment stablecoins. The bill also restricts stablecoin balances from functioning in a manner equivalent to interest-bearing bank deposits.
<blockquote class="twitter-tweet">
 Going live now for Brian’s AMA.<a href="https://t.co/5Q2vS9hBwN" rel="noopener noreferrer nofollow">https://t.co/5Q2vS9hBwN</a>
 — Coinbase <img src="https://s.w.org/images/core/emoji/17.0.2/72x72/1f6e1.png" alt="🛡"> (@coinbase) <a href="https://twitter.com/coinbase/status/2053919610924404860?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">May 11, 2026</a>
</blockquote>
Coinbase CEO Brian Armstrong said during a live event on X that negotiations surrounding stablecoin rewards resulted in a compromise where participants “got the must-haves.” Armstrong also stated that Coinbase is working with several major global banks on crypto integration efforts.
<blockquote>
 “We want it to be win-win and work with the banks,” Armstrong said.
</blockquote>
Banking industry groups have <a href="https://secureamericanopportunity.com/take-action/urge-senate-to-close-the-loophole/" rel="noopener noreferrer nofollow">continued lobbying</a> lawmakers to impose additional limits on stablecoin rewards programs before the committee hearing. Separately, research released by <a href="https://www.galaxy.com/insights/research/stablecoins-genius-act-bank-deposit-flight-us-dollar-dominance" rel="noopener noreferrer nofollow">Galaxy</a> argued that stablecoin growth could bring significant foreign capital into the U.S. financial system, potentially offsetting domestic deposit migration concerns.
The legislation also retains protections supported by the decentralized finance sector, including provisions linked to the Blockchain Regulatory Certainty Act. These provisions are designed to prevent software developers who do not control customer funds from being treated as money transmitters. The DeFi Education Fund stated that the current draft contains key protections for developers and infrastructure providers, while noting it will continue monitoring amendments during the legislative process.
The bill must still be reconciled with a separate version approved by the Senate Agriculture Committee before a final Senate vote can occur. Passage in the Senate would require at least 60 votes, including support from Democrats. White House crypto adviser Patrick Witt said the administration is targeting completion of the Clarity Act by July 4, while Senator Gillibrand predicted finalization by the first week of August.
<h2 id="faqs">FAQs</h2>
1. What is the U.S. crypto market structure bill? The U.S. crypto market structure bill is proposed legislation designed to create a regulatory framework for the crypto industry within the U.S. financial system.
2. What does the bill say about stablecoin yield? The bill restricts interest or yield payments connected solely to holding payment stablecoins and limits stablecoin balances from functioning like interest-bearing bank deposits.
3. Does the bill include protections for DeFi developers? Yes. The legislation includes provisions linked to the Blockchain Regulatory Certainty Act, which aims to prevent developers who do not control customer funds from being treated as money transmitters.
4. What challenges does the crypto bill still face? The legislation still requires committee approval, reconciliation with the Senate Agriculture Committee version, and at least 60 votes in the Senate before it can advance further.
Source: <a href="https://www.banking.senate.gov/imo/media/doc/ehf26374.pdf" rel="noopener noreferrer nofollow">Senate Gov (309-Page)</a>

Senate Banking Committee Releases CLARITY Act Draft Ahead of Key Crypto Regulation Vote

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