# Senate Banking Releases CLARITY Act Draft Ahead of Thursday Markup

> The nine-title bill separates SEC and CFTC jurisdiction, introduces Regulation Crypto for ancillary assets, and bans deposit-like interest on stablecoins.

**Published by:** [ETH Daily](https://ethdaily.io/)
**Published on:** 2026-05-12
**Categories:** clarity-act, senate-banking, regulation, defi, stablecoins, sec, cftc
**URL:** https://ethdaily.io/senate-banking-releases-clarity-act-draft-ahead-of-thursday-markup

## Content

Senate Banking Committee Chairman Tim Scott released the latest draft of the Digital Asset Market Clarity Act ahead of a markup scheduled for Thursday, May 14. The White House is targeting July 4 for House passage, with four working Senate weeks in June reserved for Senate floor consideration. The nine-title bill draws a firm line between the SEC and CFTC by distinguishing between digital commodities and ancillary assets. Ancillary assets are coined as network tokens whose value depends on entrepreneurial or managerial efforts. A new exemption called Regulation Crypto would allow ancillary asset issuers to raise capital from retail investors without full securities registration, capped at $50 million per year over four years or 10% of outstanding asset value, with a hard ceiling of $200 million. On DeFi, the bill defines a protocol as decentralized only if no single person has the practical ability to control, alter, or censor its operations. The bill's most contested provision, Section 404, prohibits covered digital asset service providers from paying passive, deposit-like interest on payment stablecoin balances. The exact contours of permissible yield programs will be left to joint rulemaking by the SEC, CFTC, and Treasury.Disclaimer: Content is for informational and educational purposes only and does not constitute financial, investment, legal, or other professional advice. No representations or warranties are made as to accuracy, completeness, or timeliness. Use of this content is at your own risk, and you should consult a qualified professional before making decisions. No fiduciary or advisory relationship is created

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