The CLARITY Act could give XRP, ADA, HBAR and XLM clearer legal status by shifting some oversight from the SEC to the CFTC. However, the bill is not law yet and still needs Senate approval, House reconciliation and a presidential signature. Stablecoin yield rules also remain under debate.
The CLARITY Act is moving through Congress as one of the most closely watched crypto market structure bills in the United States. The Senate Banking Committee advanced the bill on May 14, 2026, according to legal updates on the measure.
The bill still needs full Senate approval, reconciliation with the House version, and a presidential signature before it becomes law. However, analysts say it “could” give several major crypto networks a clearer legal path if Congress finalizes the framework.
CLARITY Act Would Set Federal Crypto Rules
The CLARITY Act would divide digital assets into clearer legal groups. Digital commodities would fall mainly under the Commodity Futures Trading Commission, while investment contract assets would remain under the Securities and Exchange Commission.
That structure matters for tokens such as XRP, ADA, HBAR and XLM. These assets have faced years of legal caution from exchanges, funds and institutions amid SEC enforcement actions and shifting regulatory views. However, the bill would place asset classification into federal law rather than agency guidance.
One analyst described the difference as “the difference between a memo and a contract.” The comment reflects a central market concern: guidance can change under a new SEC chair, while a statute requires Congress to amend it.
Even so, the bill has not become law. Therefore, claims that it will “permanently” end SEC scrutiny remain conditional. The final wording, agency rulemaking and court review would still shape how the law applies.
XRP, ADA, HBAR and XLM Face Different Paths
XRP remains the most visible case. Ripple fought the SEC for years, and a federal court ruling found that XRP’s secondary-market sales were not securities in that context. Supporters say CLARITY “could” give XRP a stronger statutory shield if the token qualifies under the commodity framework.
Cardano also sits at the center of the debate. The SEC named ADA in its 2023 Coinbase lawsuit, which raised caution among platforms and institutions. Under the proposed framework, a sufficiently decentralized blockchain may support commodity treatment, while staking and network rewards would depend on final rules.
Hedera has a different profile. Its governing council includes major companies and supporters often cite that structure when discussing enterprise use. However, some institutional users have remained cautious as crypto classification rules remain unsettled.
Stellar’s XLM also carries a payments-focused use case similar to XRP. Supporters say federal classification could reduce legal doubt around payment networks, cross-border settlement tools and related infrastructure.
Stablecoin Yield Rules Add Another Layer
The CLARITY Act also addresses stablecoin activity. Legal summaries of the Senate Banking text say the bill covers limits on stablecoin yield, DeFi oversight, developer protections and customer-property rules.
Under the current proposal, passive yield on stablecoin balances would face limits. However, activity-based rewards tied to payments or platform use may remain possible, depending on final language and agency interpretation.
A 10x Research report argued that the stablecoin section may pull yield back toward banks and regulated funds. Markus Thielen described it as “a clear re-centralization of yield”.
That view remains disputed. Some crypto analysts argue that limits on centralized yield products “could” push more users toward on-chain activity. Others say stricter front-end and token rules may reduce DeFi liquidity.
For now, the CLARITY Act remains a pending bill, not final law. Its treatment of XRP, ADA, HBAR, XLM, DeFi and stablecoins will depend on Senate negotiations, House reconciliation and the final text sent to the president.
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