The CLARITY Act, a bill aiming to set federal market structure rules for digital assets in the U.S., is heading toward a critical vote. The Senate Banking Committee is scheduled to consider the bill on May 14, and its fate may hinge on a handful of Democratic members.
Galaxy Digital has identified seven Democratic senators on the committee as potential swing votes. According to the firm, support from Democrats in the committee could significantly boost the bill’s chances of reaching the full Senate floor. Galaxy named Ruben Gallego and Angela Alsobrooks as “constructive/pro-framework” lawmakers on crypto. It also listed Mark Warner, Catherine Cortez Masto, Andy Kim, and Raphael Warnock as possible “deal-makers.” Lisa Blunt Rochester was placed in a “mixed” category.
The CLARITY Act seeks to define when crypto tokens fall under securities or commodities oversight. This question has fueled years of disputes between regulators and the industry. The bill also needs support beyond the committee. Coinbase policy executive Kara Calvert has said the measure requires at least 60 votes in the Senate, meaning bipartisan support is essential. “You need a bipartisan bill,” she said, though that still depends on the final text and timing of the vote.
Stablecoin rewards remain a sticking point
One of the largest disputes centers on stablecoin rewards. A compromise brokered by Republican Senator Thom Tillis and Democratic Senator Angela Alsobrooks would ban rewards on idle stablecoin holdings but allow rewards tied to other activities, such as payments. However, banking groups still object. Five major banking groups rejected the Tillis-Alsobrooks language days before the markup, arguing it leaves room for crypto firms to offer rewards that resemble deposit interest. Senators Cynthia Lummis and Tillis pushed back, saying the compromise was built after months of work.
Committee vote could signal broader support
The Senate Banking Committee has 24 members: 13 Republicans and 11 Democrats. If all Republicans support the bill, some Democratic votes may still matter for showing wider support before a floor fight. Galaxy’s view is that Democratic backing in the markup would change the market’s reading of the bill’s odds. Galaxy Research had previously put the CLARITY Act’s 2026 passage odds at about 50-50 or lower. The firm noted the bill must clear several steps, including the markup, a 60-vote Senate threshold, and reconciliation with other versions.
Democrats seek stronger safeguards
Democrats have raised concerns around illicit finance, political conflicts, and consumer protection. Many congressional Democrats see the bill as too weak on anti-money laundering rules and want stronger limits on officials profiting from crypto ventures. At the same time, some Democrats have shown interest in a market structure framework. A September 2025 statement from Democratic senators called for rules covering spot markets, issuer oversight, platform regulation, illicit finance, corruption risks, and fair regulation. That earlier statement suggests the coming markup may turn on negotiated safeguards rather than party lines alone.
