A U.S. bill bringing cryptocurrencies into the regulatory mainstream has cleared the Senate Banking Committee despite resistance from the banking industry. With only a full Senate vote remaining, analysts say the institutionalization of digital assets in the United States is now within sight.
According to The Wall Street Journal and other outlets on the 14th (local time), the U.S. Senate Banking Committee approved the Digital Asset Market Clarity Act, or CLARITY Act, with the support of all Republican members and two Democrats. The CLARITY Act classifies the legal status of cryptocurrencies as securities or commodities and clearly defines the jurisdiction of the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). If enacted, the bill would resolve regulatory uncertainty surrounding cryptocurrencies, potentially drawing more institutional capital into the market.
The CLARITY Act passed the U.S. House of Representatives on July 17 last year. The remaining steps are a full Senate vote and President Donald Trump's signature. Clearing the Senate requires 60 of the 100 votes to overcome a filibuster. The ruling Republican Party holds 53 seats — a Senate majority but short of the threshold to pass the bill on its own. At least seven votes must come from the 47-member Democratic caucus, which includes four opposition-leaning independents. The two Democrats who voted in favor at the committee said they could oppose the bill on the floor unless provisions strengthening anti-money laundering rules and barring politicians from profiting off cryptocurrencies are added.
The bill has from the outset been pushed amid a tug-of-war between the cryptocurrency industry, which is racing to institutionalize the sector, and the banking industry, which is trying to block it. Crypto firms such as Coinbase have strongly demanded that stablecoin rewards be allowed. The crypto industry poured more than $119 million into supporting friendly candidates in the 2024 elections to encourage legislation. The American Bankers Association (ABA) also lobbied Republican lawmakers to remove the relevant provisions, arguing that deposits could be eroded.
The Senate Banking Committee ultimately revised the bill to allow crypto operators to offer usage-based stablecoin rewards while restricting payments of interest or yield similar to a savings account. The bill also includes an exemption clause directing regulators not to apply the law in a blanket manner, but to permit, rather than punish, sound activity that is essential to the development of the blockchain ecosystem and not speculative in nature.
