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U.S. Senate CLARITY Act Talks Break Down Over Developer and Ethics Provisions

According to Crypto In America reporter Eleanor Terrett, bipartisan Senate talks ended without a deal despite 99% agreement, leaving developer protections and ethics language unresolved ahead of the Senate Banking Committee markup.

Fact Check
The claim is strongly supported by multiple independent sources. The original @BitcoinMagazine post (status/2054668650968166679) quotes Fidelity's statement verbatim, and dozens of retweets of @FidelityPolicy confirm the statement originated from Fidelity's own official policy account on X. The Senate Banking Committee's official website (banking.senate.gov) confirms the committee released the CLARITY Act market structure bill text on May 12, 2026, ahead of an Executive Session markup scheduled for May 14, 2026, directly corroborating that the committee advanced the bill. The ABA Banking Journal further confirms the committee released the bill text ahead of a vote. All three core elements of the claim - Fidelity's backing, the Senate Banking Committee's advancement, and the CLARITY Act as a crypto market structure bill providing statutory clarity - are confirmed by authoritative sources.
Summary

Bipartisan U.S. Senate negotiations on the CLARITY Act, a crypto market structure bill, ended without agreement, according to Crypto In America reporter Eleanor Terrett, increasing the likelihood Republicans will try to advance the measure without Democratic support. Senator Cynthia Lummis said lawmakers had reached 99% agreement, but talks stalled over two unresolved issues: Blockchain Regulatory Certainty Act protections for non-custodial or non-controlling developers and ethics or conflict-of-interest provisions tied to the president’s family. The Senate Banking Committee is reviewing the bill amid more than 100 filed amendments, and if approved it could advance to a full Senate vote. Brian Armstrong described the CLARITY Act vote as a major opportunity to move the U.S. financial system forward, while Galaxy Digital said seven Democratic senators on the committee could be pivotal.

Terms & Concepts
  • CLARITY Act: A proposed U.S. crypto market structure bill intended to define regulatory roles for digital assets and provide clearer statutory rules for digital asset markets.
  • Blockchain Regulatory Certainty Act: Legislative language described in the reports as exempting non-controlling or non-custodial developers and providers from federal money transmitter requirements.
  • Banking committee markup: A legislative review stage in which committee members debate, amend, and vote on a bill before it can advance.