U.S. senators are set to review the long-awaited Clarity Act this week, a major crypto bill that would establish a regulatory framework for digital assets in the United States.
The legislation aims to define which cryptocurrencies fall under securities laws and which are treated as commodities, helping clarify oversight responsibilities between U.S. financial regulators.
Tim Scott, chairman of the Senate Banking Committee, said the panel will hold a hearing on May 14 in Washington, D.C.
The crypto industry has strongly backed the bill, arguing that clearer rules are needed to support growth and innovation in the U.S. digital asset sector.
The bill also includes rules related to stablecoins, including a provision that would ban rewards or interest payments on idle stablecoin balances. The measure is intended to address concerns from banks, which argue that interest-bearing stablecoins could draw deposits away from the traditional banking system.
However, crypto firms say stricter limits on stablecoin rewards could hurt competition and slow industry growth.
The Clarity Act previously passed the House of Representatives and would still need Senate approval before being sent to President Donald Trump for final approval.
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