BUSINESS

Washington Senate proposes revised federal crypto framework

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The United States Senate has unveiled a revised, 616-page version of the Digital Market Clarity Act, a bill intended to create a comprehensive federal regulatory framework for cryptocurrencies. The proposal amends the Federal Reserve Act to bar Federal Reserve Banks from offering products or services directly to individuals and prohibits the use of any central bank digital currency for implementing monetary policy. It also introduces a formal legal definition of a “digital commodity,” covering blockchain-based assets distinct from traditional securities. Major U.S. banking trade groups quickly voiced concerns, warning that the bill’s stablecoin provisions could divert deposits and weaken community lending activity.

Prepared by Christopher Adams and reviewed by editorial team.

Timeline of Events

On May 12, 2026, Senate Banking Committee published a section-by-section summary of the Clarity Act.
On May 14, 2026, the Senate Banking Committee officially advanced the Digital Asset Market Clarity Act.
On July 22, 2026, the U.S. Senate released a revised 616-page text of the Digital Market Clarity Act.
On July 23, 2026, media outlets reported key provisions regarding federal ethics rules and stablecoin restrictions.
On July 28, 2026, banking trade organizations formally expressed lingering concerns regarding potential commercial bank deposit flight.
On July 29, 2026, financial services trade groups continued analyzing the legislative text's impact on lending.
In coming months, Congress will debate amendments regarding stablecoin rewards and Federal Reserve Bank digital asset limitations.
During late 2026, legislative negotiations will attempt to reconcile Senate provisions with the House market structure bill.
By early 2027, lawmakers anticipate floor votes on regulatory jurisdiction boundaries for digital assets and commodities.
In future years, federal agencies will issue joint rules implementing new definitions and compliance frameworks for tokens.

Why This Matters to You

The bill alters federal financial oversight and crypto market regulations.
New statutory definitions could permanently reshape commercial banking deposit structures.
Commercial banks, crypto firms, federal regulators, and institutional investors.
Track official legislative text updates and banking association policy responses.