Clarity Act Moves Forward After 15-9 Committee Vote

TLDR

• The Senate Banking Committee advanced the Clarity Act in a 15-9 vote with two Democrats joining Republicans.
• The bill would split crypto oversight between the SEC and the CFTC and set rules for exchanges and brokers.
• Lawmakers rejected several Democratic amendments related to sanctions, ethics, and anti-money laundering measures.
• A DeFi safe harbor amendment passed 18-6 after support from a bloc of Democrats and Republicans.
• The Clarity Act will merge with the Agriculture Committee version before heading to the full Senate.

The Senate Banking Committee approved the Digital Asset Market Clarity Act in a 15-9 vote on Thursday. Sens. Ruben Gallego and Angela Alsobrooks joined 13 Republicans to move the bill forward. The measure now heads toward a merger with the Senate Agriculture Committee text before a floor vote.

Clarity Act Clears Committee With Bipartisan Support

Lawmakers advanced the Clarity Act after months of cross-party negotiations and revisions. Chair Tim Scott said the bill ends a “regulatory gray zone” for crypto firms. He added that the framework would protect consumers and keep innovation in the United States.

Sen. Cynthia Lummis called the proposal “the hardest piece of legislation” of her career. She said the bill fits new digital assets into an older regulatory system. The text splits oversight between the SEC and the CFTC and sets rules for exchanges, brokers, and custodians.

The committee rejected several Democratic amendments during the markup session. Sen. Elizabeth Warren opposed the bill and called it “a bill written by the crypto industry.” She argued that the draft weakens securities law protections that date to 1929.

Warren also warned that the bill allows banks to increase crypto exposure. She linked that risk to practices before the 2008 financial crisis. Republicans voted down her amendments in 11-13 votes.

Ethics, Sanctions, and DeFi Debates Shape Vote

Democrats raised concerns about illicit finance and stablecoins during the hearing. Sen. Jack Reed said Iranian actors use stablecoins to buy drone components. He sought authority for regulators to block foreign illicit stablecoin flows, but the amendment failed.

Sen. Chris Van Hollen cited estimates that over $150 billion moved through illicit wallets last year. He proposed penalties for releasing DeFi protocols designed for money laundering. Republicans rejected his measure and said current criminal laws already cover such conduct.

Ethics issues tied to President Donald Trump also shaped debate. Van Hollen proposed barring elected officials from crypto business ties. Sen. Bernie Moreno opposed the amendment and said it belonged in the Judiciary Committee, and the panel defeated it 11-13.

A key vote came on Lummis Amendment 122 regarding DeFi safe harbors. The committee adopted the amendment 18-6 after a technical revision. Warner, Cortez Masto, and Alsobrooks joined Republicans to support the compromise language.

Earlier, Chair Scott limited the number of amendments under committee rules. He later reinstated selected proposals to secure bipartisan backing. By the final vote, Gallego and Alsobrooks provided the Democratic support needed for the 15-9 outcome.

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