Author: Anjali Belgaumkar, CoinPedia
The Senate Banking Committee released the full 309-page draft of the Digital Asset Market Clarity Act on Tuesday morning, asking committee members to submit amendments by the close of business Wednesday, in time for preparation ahead of the committee's markup vote scheduled for Thursday at 10:30 AM Eastern Time.
The release of this draft follows months of difficult negotiations; talks that repeatedly came close to breaking down over issues including stablecoin yield provisions, ethics rules, and decentralized finance (DeFi) regulation. The draft now presents the most complete picture yet of what the U.S. cryptocurrency regulatory framework would actually look like if the bill ultimately passes.
Bitcoin and Ethereum to Be Permanently Designated as Non-Securities
One of the most significant provisions locks in the regulatory classification of major cryptocurrencies immediately. Under the draft, any token that served as the principal asset of a spot Exchange Traded Product (ETP) as of January 1, 2026, will be permanently treated as a non-security.
In practice, this means Bitcoin, Ethereum, and any other assets that obtain spot ETP approval by the end of 2025 would not be reclassified as securities by future leadership changes at the SEC or CFTC. The legal certainty the industry has sought for years has been written directly into the bill text.
Staking Granted Full Protection
The draft excludes staking activities entirely from being classified as securities. The following four specific staking structures are explicitly categorized as administrative or operational activities, rather than investment activities:
- Staking by token holders themselves.
- Self-custodial staking through third-party node operators.
- Liquid staking via receipt tokens.
- Custodial staking services offered by exchanges.
Critically, the draft also stipulates that governance rights attached to a token will not cause that token to lose its non-security status. This directly addresses one of the most contentious regulatory gray areas the crypto industry has faced for years.
Banks Can Enter Crypto Without Prior Approval
Section 401 of the draft opens the door for traditional banking institutions to enter digital asset businesses without needing prior regulatory approval. National banks, state banks, and credit unions are all permitted to offer the following services as activities incidental to traditional banking:
- Digital asset custody.
- Staking services.
- Lending against digital assets as collateral.
- Payment processing.
- Market making.
- Underwriting.
None of these activities require prior regulatory approval. For an industry that has watched banks turn away crypto clients for years due to regulatory uncertainty, this single provision represents a structural shift in how digital assets integrate with the traditional financial system.
Stablecoin Yields Settled
Section 404 of the draft draws the clearest line yet on stablecoin reward mechanisms. Exchanges and platforms may not pay interest or yields to users solely for holding stablecoin balances. Any returns that are economically equivalent to interest on bank deposits are directly prohibited.
However, activity-based rewards are explicitly permitted to continue. This includes staking rewards, governance participation incentives, loyalty programs, and rewards tied to actual platform usage. Existing exchange reward programs that pay passive yields on stablecoin balances will need to adjust their business models to comply.
This compromise satisfies the banking lobby's core demand — preventing stablecoins from functioning as interest-bearing deposits — while preserving the activity-based reward structures that crypto platforms argue are fundamentally different from traditional deposit interest.
What Happens Next
Committee members must submit amendments by the close of business Wednesday. Thursday's committee markup at 10:30 AM Eastern Time will determine whether the bill advances past the committee stage. If approved, it will still need to pass a full Senate vote; and the Senate version must be reconciled with the House version before it can be sent to President Trump for signature.
The White House has set July 4 as the target date for final signing. Thursday's committee markup is the next critical milestone.
Original Bill Documents
Link to the original draft bill: https://www.banking.senate.gov/imo/media/doc/ehf26374.pdf
