Coinbase Policy Chief Sees May Senate Vote on CLARITY Act as Stablecoin Market Hits $320 Billion

TL;DR Coinbase policy chief predicts a Senate markup on the CLARITY Act this month, setting up a May floor vote as the stablecoin market tops $320 billion.

## Context Senate Banking Committee has stalled the CLARITY Act for months, but negotiators say a breakthrough on stablecoin yield is near. The bill would create a federal framework for digital assets, enabling tokenization of real‑world assets and clearer rules for stablecoins. Its passage would give institutions the regulatory predictability needed to scale tokenized products.

## Key Facts Faryar Shirzad, Coinbase’s Chief Policy Officer, told Fox Business he is hopeful Chairman Scott can schedule a markup this month, leading to a floor vote in May and a bipartisan win. The CLARITY Act already cleared the House in July 2025 by a vote of 294‑134 with support from both parties. Meanwhile, the stablecoin market exceeds $320 billion; USDC holds roughly $55 billion and USDT about $115 billion, together over half the total. USDT’s market cap rose 4 % week‑over‑week while USDC gained 2 %, reflecting steady demand. Analysts project the sector could reach $1‑2 trillion as more payments and tokenized assets adopt stablecoins. The legislation seeks to ban pure passive yield on stablecoins while permitting activity‑based rewards tied to transfers or platform usage, a compromise aimed at easing bank concerns about deposit flight.

## What It Means If the Senate advances the bill, banks would gain clarity on stablecoin offerings without facing unregulated shadow‑banking risks, while fintechs could launch yield‑bearing products under defined guardrails. Investors would see reduced compliance costs and clearer pathways for tokenized bonds, real estate and trade finance. A delay past May would push comprehensive reform into the next Congress, likely extending the current enforcement‑only regime and increasing costs for crypto firms.

Watch for the Senate Banking Committee’s markup schedule later this month and any amendments to the yield provision.