The Senate Banking Committee advanced the CLARITY Act, moving US crypto market structure legislation closer to a full vote.
Crypto News
The US Senate Banking Committee voted on May 14 to advance the Digital Asset Market Clarity Act (CLARITY), clearing a key step in Congress' push to establish a federal regulatory framework for digital assets.
All 13 Republican members voted to move the bill forward, joined by Democratic Senators Ruben Gallego and Angela Alsobrooks. Nine Democrats voted against it. The vote followed debate over more than 100 proposed amendments covering areas including stablecoin yield, crypto mixer oversight, and conflicts of interest.
Committee Chair Tim Scott said the bill was designed to protect consumers, support domestic innovation, and address national security concerns related to digital assets. Ranking member Elizabeth Warren argued the legislation serves the crypto industry's interests. She said no provision made it into the final text without industry approval.
Democrats Flag Ethics and Enforcement Concerns
Senator Cynthia Lummis, a lead Republican sponsor, described CLARITY as both pro-consumer and pro-law enforcement. She said the bill already includes crypto mixer oversight, countering a separate amendment Warren had proposed on money laundering. Warren cited reports of crypto being used to collect tolls for passage through a key global shipping route as evidence of insufficient oversight in the current draft.
Among the amendments considered on May 14, Scott's provision creating AI regulatory sandboxes was adopted, while Warren's money laundering amendment failed. Amendments from Senators Catherine Cortez Masto, Jack Reed, Tina Smith, and Raphael Warnock also failed, each along party lines. Cortez Masto's amendment sought to expand law enforcement authority over crypto-related cases; Smith's would have prohibited federal agencies from bailing out crypto firms following a market crash.
Senator Chris Van Hollen introduced a provision targeting potential conflicts of interest between digital asset issuers and those involved in shaping related policy. All 13 Republicans voted against it. Senator Warnock subsequently withdrew his own amendment, stating he would not support any version of the bill without stronger ethics protections.
Path to a Senate Floor Vote
CLARITY has now cleared both the Senate Banking Committee and the Senate Agriculture Committee, which covers Commodity Futures Trading Commission (CFTC) jurisdiction. The bill will also need to pass through provisions relating to the Securities and Exchange Commission (SEC) before heading to a full Senate floor vote. It requires 60 votes to pass the Senate before moving to the House of Representatives.
Solana Policy Institute President Kristin Smith told Cointelegraph ahead of the May 14 markup that a Senate-passed version with sufficient votes would likely clear the House in identical form before going to the president for a signature.
This article contains links to third-party websites or other content for information purposes only (“Third-Party Sites”). The Third-Party Sites are not under the control of CoinMarketCap, and CoinMarketCap is not responsible for the content of any Third-Party Site, including without limitation any link contained in a Third-Party Site, or any changes or updates to a Third-Party Site. CoinMarketCap is providing these links to you only as a convenience, and the inclusion of any link does not imply endorsement, approval or recommendation by CoinMarketCap of the site or any association with its operators. This article is intended to be used and must be used for informational purposes only. It is important to do your own research and analysis before making any material decisions related to any of the products or services described. This article is not intended as, and shall not be construed as, financial advice. The views and opinions expressed in this article are the author’s [company’s] own and do not necessarily reflect those of CoinMarketCap.
