The Clarity Act, a pivotal crypto market structure bill, faces a crucial vote in the Senate Banking Committee this Thursday after prolonged negotiations. If passed, it would legalize most crypto activity in the U.S., a long-standing industry goal. Key outstanding issues include whether to restrict yield on stablecoins, with banks pushing for tighter limits to protect traditional savings products and crypto firms fighting to preserve such offerings. A compromise would allow yield in some circumstances, but banks argue it has loopholes, and are lobbying senators to oppose it. Another major debate involves banning public officials from launching or promoting crypto products while in office; Senate Democrats insist on this ethics provision, while the committee’s Republican leadership claims it falls outside their jurisdiction. Some Democrats may oppose the bill at markup if the ethics language is excluded, potentially leading to a party-line committee vote and complicating chances for bipartisan Senate passage. Lastly, the bill incorporates a compromise on the Blockchain Regulatory Certainty Act, clarifying criminal liability for crypto developers, which has resolved internal GOP disputes but may not be enough to assuage Democratic concerns. The outcome remains uncertain ahead of Thursday’s vote.