Senate Committee Clears Digital Asset Clarity Act as Robinhood Jumps 6.16%
The Senate Banking Committee passed the Digital Asset Clarity Act on May 14, 2026, by a 15-9 vote, triggering a short squeeze that liquidated over $250 million in crypto shorts. Robinhood shares jumped 6.16% as Bitcoin briefly climbed to $81,965 and crypto-linked equities surged.
1. Passage and Legislative Next Steps
On May 14, 2026, the Senate Banking Committee approved the Digital Asset Clarity Act by a 15-9 vote, establishing a jurisdictional split between the SEC and CFTC for digital assets. The bill must still clear a full Senate floor vote and conference reconciliation before becoming law.
2. Market Reaction and Equity Gains
The committee clearance triggered over $250 million in short-position liquidations within four hours, sending Bitcoin to a high of $81,965 before settling near $80,500. Crypto-linked equities rallied sharply, with Coinbase up 9.10%, MicroStrategy up 8.16% and Robinhood gaining 6.16% on renewed optimism.
3. SEC vs CFTC Framework and Implications
The act defines a decentralization threshold to classify tokens under CFTC commodities or SEC securities, providing clarity that institutional and retail platforms like Robinhood need. By codifying the SEC-to-CFTC framework, the bill aims to reduce enforcement ambiguity and potentially unlock new capital inflows into crypto markets.