Crypto Monday: CLARITY Fights on Yield, Conflicts Likely Punted To Full Senate

Research evidence excerpt

Crypto Monday: CLARITY Fights on Yield, Conflicts Likely Punted To Full Senate

TD Securities (USA) LLC POLICY NOTE

May 11, 2026

■WRG Crypto Currency Crypto Monday: CLARITY Fights on Yield,

■WRG Financial Services

Conflicts Likely Punted To Full Senate

Jaret Seiberg THE TD COWEN INSIGHT

202 868 5313

Senate Banking at 10:30 AM on Thursday intends to vote on crypto market structure

jaret.seiberg@tdsecurities.com

legislation. The vote on the so-called CLARITY Act comes despite banking industry objections

to the treatment of yield and Democratic objections to lack of conflict of interest provisions. It

is why we see this vote as shifting the fight to the full Senate rather than as an indicator of a

deal.

Our View

■Senate Banking Chair Tim Scott appears likely to proceed Thursday with the committee

vote on CLARITY without resolving objections from the banks, Democrats or law

enforcement.

■It is why this does not mean the bill will become law even though Senate Banking should

pass it in a party-line vote. Major obstacles exist to enactment.

■Senate Banking is shifting these fights from the committee to the full Senate. This is a smart

political move as time is running short as we believe the full Senate must vote before the

August recess for the bill to be enacted this year.

■Advancing the bill out of the Banking Committee permits the measure to be combined with

the Senate Agriculture version of the legislation. Senate leaders can then start negotiating

with Democrats and Republicans to figure out what changes are needed for the combined

package to get the 60 votes needed to pass.

■What this does not do is end the policy differences that have stalled the bill in Senate

Banking for nearly a year. We continue to struggle to see how one reaches a deal on stable