Senate Banking Committee Votes on Clarity Act

Today, the Senate Banking Committee conducted a markup of the Digital Asset Market Clarity (Clarity) Act of 2025. The legislation provides clear authorization for both federal credit unions and federally insured, state-chartered credit unions to participate with digital assets, and envisions a path for privately insured, state-chartered credit unions to have opportunities in this space as well.  

The bill includes language requiring a report to Congress to look at the extent to which credit unions are affected by any depository outflows due to the provisions covering payment of interest or yield on stablecoins. However, there are still concerns that the current language could open opportunities that could allow passive earnings of interest and yield, undermining Congressional intent of the prohibition.

On April 13, Cornerstone submitted a comment letter to NCUA recommending that the agency consider flexible approaches to expand credit union participation in stablecoin markets by allowing federal credit unions to invest in permitted payment stablecoin issuers (PPSI) subsidiaries that are distinct from credit union service organizations, consistent with Congress’s intent. In the letter, we also recommended that NCUA consider developing a coordinated supervisory framework with other federal and state regulators that would permit credit unions to invest in or partner with stablecoin issuers subject to comparable regulatory oversight.

Today’s highly anticipated markup takes place after months of negotiations and marks a historic step toward establishing a clear regulatory framework for digital assets. U.S. Rep. French Hill of Arkansas and Glenn "GT" Thompson, respectively the chairs of the House Financial Services and Agriculture Committees, said in a joint statement that they “commend Chairman Tim Scott and the Senate Banking Committee” for Thursday's vote.

“Clear durable rules will help drive greater institutional and retail adoption, support innovation, create more high-quality jobs in the U.S., protect Americans, and ensure that our country leads when it comes to digital assets policy and innovation,” they said.

The Clarity Act is expected to advance out of Committee on a party-line vote, though additional changes are likely on the Senate floor as lawmakers work to secure the bipartisan support needed for final passage.