--- title: "5 Things to Know about the CLARITY Act" sha256: 6e9e2d87f785bc94b68a1ed209cee08e68fb99d39e3ed3c3218a7eae9d8f73ca source: newsletter source_url: https://finovate.com/5-things-to-know-about-the-clarity-act/ tags: [finovate] fetcher: jina review_value: 7 review_confidence: 8 review_recommendation: strong ingested: 2026-05-15 --- Published Time: 2026-05-13T19:32:33+00:00 Markdown Content: # 5 Things to Know about the CLARITY Act - Finovate [Skip to content](https://finovate.com/5-things-to-know-about-the-clarity-act/#content) Finovate is part of the Informa Connect Division of Informa PLC * [Informa PLC](https://informa.com/) * [About us](https://informa.com/about-us/) * [Investor relations](https://informa.com/investors/) * [Talent](https://informa.com/talent/) This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. 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[](https://finovate.com/) Toggle navigation More Toggle navigation * [Events▾](https://finovate.com/5-things-to-know-about-the-clarity-act/# "Events▾") * [FinovateEurope](https://informaconnect.com/finovateeurope/ "FinovateEurope") * [FinovateSpring](https://informaconnect.com/finovatespring/ "FinovateSpring") * [FinovateFall](https://informaconnect.com/finovatefall/ "FinovateFall") * [FinovateAwards](https://informaconnect.com/finovate-industry-awards/ "FinovateAwards") * [Blog](https://finovate.com/blog/ "Blog") * [Programs▾](https://finovate.com/5-things-to-know-about-the-clarity-act/# "Programs▾") * [Product Demos](https://finovate.com/apply-to-demo/ "Product Demos") * [Sustainable & Inclusive Demo Scholarships](https://finovate.com/scholarship-program/ "Sustainable & Inclusive Demo Scholarships") * [Discounted Startup Access](https://finovate.com/startup-booster-program/ "Discounted Startup Access") * [Leadership Program](https://finovate.com/exec-reboot/ "Leadership Program") * [Best of Show](https://finovate.com/best-of-show-award-winners-since-2007/ "Best of Show") * [Demo Videos](https://finovate.com/videos/ "Demo Videos") * [Podcast](https://finovate.com/podcast/ "Podcast") # Finovate Blog Tracking fintech, banking & financial services innovations since 1994 [Back to Blog](https://finovate.com//blog/) # 5 Things to Know about the CLARITY Act ![Image 1: 5 Things to Know about the CLARITY Act](https://finovate.com/wp-content/uploads/2026/05/pexels-akbar-fathi-418917429-15227605-scaled.jpg) By [Julie Muhn (@julieschicktanz)](https://finovate.com/author/julie/)Posted on [May 13, 2026](https://finovate.com/5-things-to-know-about-the-clarity-act/) Categories: [List series](https://finovate.com/category/list-series/), [Thought Leadership](https://finovate.com/category/thought-leadership/) ![Image 2](https://finovate.com/wp-content/uploads/2026/05/pexels-akbar-fathi-418917429-15227605-scaled.jpg) The US Senate Banking Committee [unveiled](https://www.banking.senate.gov/newsroom/majority/the-facts-the-clarity-act-protects-main-street-unleashes-responsible-innovation-and-cracks-down-on-fraud-and-money-laundering) the latest version of the CLARITY Act this week. The Act aims to establish a clear regulatory framework for digital assets. The CLARITY Act offers enforceable guardrails for digital asset markets in an effort to protect consumers and investors, counter illicit finance and security threats, and support innovation in the US. The bill is controversial, as it includes provisions to limit liability for decentralized software developers and enters an ongoing debate around whether stablecoins should be permitted to offer yield or yield-like rewards. After more than 10 months of bipartisan negotiations, the Senate Banking Committee is preparing for a key procedural markup. Here are five things you need to know about the new version of the CLARITY Act. ## More than crypto regulation While crypto regulation is making headlines, the Act comes with broader stakes as it also attempts to define who controls the future infrastructure of digital finance in the US. Supporters argue the Act helps preserve a more market-driven and decentralized approach by defining the boundaries of governmental power while protecting the autonomy of private developers and individual users. This debate extends beyond crypto trading and will ultimately determine who will own and govern the next generation of financial rails. Stablecoins, tokenized assets, and AI-driven financial agents are on the rise, and the rules governing those future financial rails are yet to be settled. The companies and platforms controlling the new infrastructure could hold influence similar to what cloud providers, mobile operating systems, and card networks hold today. ## Delineates between securities and commodities The debate over whether digital assets are considered securities has been around for about a decade. That’s why determining when a token is treated like a security and when it can transition into a commodity is one of the biggest goals of the CLARITY Act. The determination will dictate how exchanges and platforms operate, which regulator oversees it, and what disclosures are required. ## Yield is a battlefield The debate over whether or not stablecoins can pay yield (or yield-like rewards) has been a major sticking point between banks and crypto firms. While banks argue that stablecoin yield products could compete directly with deposits and pull money out of the traditional banking system, crypto companies argue that restrictions would hurt innovation and competitiveness. The Act does not explicitly use the term “yield” in relation to stablecoins. However, it does establish a regulatory framework that distinguishes between different types of digital assets based on whether they provide a financial return, such as interest. The CLARITY Act implies that if a digital asset provides a right to interest, it would likely fall under the jurisdiction of securities laws rather than being treated as a digital commodity or a permitted payment stablecoin. While separate stablecoin legislation continues to evolve in parallel in the form of the GENIUS Act, the CLARITY Act intersects with those debates because of how digital assets offering financial return may ultimately be categorized. ## About global competitiveness Supporters of the Act argue that it is less about embracing crypto speculation and more about preventing the next generation of financial infrastructure from being built outside the US. Europe, Hong Kong, the UAE, and Singapore have already moved ahead with digital asset frameworks, and if the US does not create a set of regulatory guardrails within this arena, banks, fintechs, and crypto firms will feel less safe innovating in the digital asset space. ## Even if it passes, the debate is far from over The legislation does not resolve every concern. In fact, there are still ongoing debates around AML protections, DeFi oversight, systemic risk, political conflicts of interest, and consumer protection. So while the CLARITY Act brings more regulatory transparency to crypto, it also accelerates a broader debate about who will govern the future infrastructure of digital finance as stablecoins, tokenized assets, and AI-driven financial systems become more integrated into commerce and payments. * * * [Photo by akbar fathi](https://www.pexels.com/photo/silhouette-of-a-man-standing-on-the-background-of-a-blurry-circular-light-15227605/) Views:536 Share this: [Send Post](https://finovate.com/cdn-cgi/l/email-protection#1a25696f78707f796e272f3a4e7273747d693a6e753a5174756d3a7b78756f6e3a6e727f3a59565b48534e433a5b796e3c78757e6327726e6e6a693f295b3f285c3f285c7c7374756c7b6e7f347975773f285c2f376e7273747d69376e75377174756d377b78756f6e376e727f3779767b68736e63377b796e3f285c)[Twitter](http://twitter.com/intent/tweet/?text=5+Things+to+Know+about+the+CLARITY+Act&url=https%3A%2F%2Ffinovate.com%2F5-things-to-know-about-the-clarity-act%2F&via=Finovate)[LinkedIn](http://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Ffinovate.com%2F5-things-to-know-about-the-clarity-act%2F "5+Things+to+Know+about+the+CLARITY+Act")[Facebook](http://www.facebook.com/sharer.php?u=https://finovate.com/5-things-to-know-about-the-clarity-act/&t=5%20Things%20to%20Know%20about%20the%20CLARITY%20Act) ### Search Search for: [](https://finovate.com/5-things-to-know-about-the-clarity-act/#) ### FinovateEurope 2026 [![Image 3: FinovateEurope](https://finovate.com/wp-content/uploads/2025/09/FEU2026-Blog.svg)](https://informaconnect.com/finovateeurope/?vip_code=FKV2483FINOVATEREF&utm_source=FinovateWebReferral&utm_medium=web_listing&utm_campaign=FKV2483-FinovateWebReferral-web_listing&utm_term=FinovateWebReferral&utm_content=FKV2483FINOVATEREF&tracker_id=FKV2483FINOVATEREF "FinovateEurope 2026") ### FinovateSpring 2026 [![Image 4: FinovateSpring](https://finovate.com/wp-content/uploads/2025/05/FS2026-Blog.svg)](https://informaconnect.com/finovatespring/?vip_code=FKV2793FINOVATEREF&utm_source=FinovateWebReferral&utm_medium=web_listing&utm_campaign=FKV2793-FinovateWebReferral-web_listing&utm_term=FinovateWebReferral&utm_content=FKV2793FINOVATEREF&tracker_id=FKV2793FINOVATEREF "FinovateSpring 2026") ### FinovateFall [![Image 5: FinovateFall](https://finovate.com/wp-content/uploads/2025/09/FinovateFall26-blog.svg)](https://informaconnect.com/finovatefall/?vip_code=FKV2797FINOVATEREF&utm_source=FinovateWebReferral&utm_medium=web_listing&utm_campaign=FKV2797-FinovateWebReferral-web_listing&utm_term=FinovateWebReferral&utm_content=FKV2797FINOVATEREF&tracker_id=FKV2797FINOVATEREF "FinovateFall") ### FinovateAwards [![Image 6: FinovateAwards](https://finovate.com/wp-content/uploads/2025/09/FinovateAwards26-blogb.svg)](https://informaconnect.com/finovate-industry-awards/?vip_code=FINOVATEREF&utm_source=PartnerMarketing&utm_medium=web_listing&utm_campaign=FKV2798-FinovateNewsletter-web_listing&utm_term=PartnerMarketing&utm_content=FINOVATEREF&tracker_id=FINOVATEREF "FinovateAwards") ### Subscribe by Email ![Image 7: Please wait...](https://assets.feedblitz.com/images/spinner.gif) Please enter your email ![Image 8: Click to hide](https://assets.feedblitz.com/images/close.gif) Email is invalid ![Image 9: Click to hide](https://assets.feedblitz.com/images/close.gif) ### Want us to cover your news? 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