REGULATION | CLARITY Act Clears Senate Committee as it Advances to Senate and House Passage

The U.S. Senate Banking Committee has advanced the long-awaited Clarity Act moving the cryptocurrency market structure bill closer to a full Senate vote after months of negotiations between lawmakers, crypto firms, and banking groups.

The bill, which seeks to establish a comprehensive regulatory framework for digital assets in the United States, passed the committee in a 15-9 bipartisan vote, with Democratic Senators, Ruben Gallego and Angela Alsobrooks, joining Republicans in backing the measure.

The legislation would clarify whether cryptocurrencies fall under securities or commodities laws and determine which federal agencies oversee different parts of the industry, a key demand from crypto companies that have argued regulatory uncertainty has hampered growth and investment.

“This legislation does not take sides between traditional finance and new technology,” Senate Banking Committee Chairman, Tim Scott, said during the hearing, according to Reuters.

Despite the committee approval, the bill still faces hurdles before becoming law.

Senators Gallego and Alsobrooks said negotiations remain ongoing and indicated they may not support the final version on the Senate floor unless additional concerns are addressed.

Debate around the bill has largely centered on stablecoin regulation and whether crypto firms should be allowed to offer rewards on dollar-backed stablecoins. Banking groups, including the American Bankers Association, have opposed provisions they say could encourage deposit flight from traditional banks into crypto platforms.

The latest version of the legislation would prohibit interest-style rewards on idle stablecoin balances while still permitting transaction-related incentives with implementation left to joint rulemaking by

• The Securities and Exchange Commission,
• The Commodity Futures Trading Commission, and
• The Treasury Department.

Several Democrats also raised concerns over anti-money laundering safeguards and potential conflicts of interest involving political figures with crypto ties. Proposed amendments targeting government officials’ involvement in crypto ventures ultimately failed during the markup session.

The crypto industry has spent heavily lobbying for the legislation viewing it as a landmark step toward regulatory clarity that could boost institutional adoption of digital assets in the United States.

The House of Representatives previously passed its own version of the Clarity Act, meaning lawmakers will eventually need to reconcile differences between the two chambers before the bill can reach President Donald Trump’s desk.

Stay tuned to BitKE for deeper insights into the global regulatory stablecoin space.

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