The Republican‑led Senate Banking Committee voted Thursday to advance the Clarity Act, a long‑anticipated bill that would establish clearer rules for digital assets and determine when crypto tokens qualify as securities.
The legislation now heads to the Senate floor, where it will require bipartisan support to pass.
Although two Democrats — Arizona’s Ruben Gallego and Maryland’s Angela Alsobrooks — supported moving the bill out of committee, both signaled they may not back it during the full Senate vote. Their hesitation reflects broader Democratic concerns over the bill’s anti‑money‑laundering provisions and the need for stronger safeguards to ensure political officials cannot profit from crypto ventures.
Crypto firms and financial institutions remain divided. Industry groups argue the bill’s definitions would finally provide regulatory clarity and accelerate adoption, while several Democrats warn the framework may weaken consumer protections.
Committee Chairman Senator Tim Scott allowed limited compromise but rejected Democratic amendments, setting the stage for a contentious debate on the Senate floor. The House passed the Clarity Act last year, but if the Senate fails to act before November’s midterm elections, the bill could face a prolonged delay.
Senator Elizabeth Warren criticized the legislation, stating, “Our job is not to advance a pro‑industry crypto bill that will put American consumers, American investors and our national security and our financial system at risk.”
