The CLARITY Act has achieved a major breakthrough after the Senate Agriculture Committee passed its portion of the crypto bill during today’s markup. However, the bill failed to get bipartisan support, with Republicans using their majority to pass the bill.
Senate Ag. Committee Passes Portion Of CLARITY Act
The Senate Agriculture Committee passed the ‘Digital Commodity Intermediaries Act’ out of committee on a party-line vote of 12 to 11, with no Democrats voting in favor of the crypto bill. This marks the first step as the Senate looks to pass the market structure legislation this year.
The passage of this portion of the CLARITY followed the crypto bill’s markup, which involved deliberations on several amendments from both Republican and Democratic committee members. The Senate Agriculture Committee’s portion of the market structure bill focuses on the CFTC’s regulatory authority over the crypto industry and crypto-asset commodities.
Attention will now turn to the Senate Banking Committee’s portion of the crypto bill, which they have yet to markup. The markup of the crypto bill is unlikely to occur until later in February or March.
A U.S. government shutdown also looms by the end of the week, which could further delay the legislative process. However, the shutdown may not last long, as Trump and Senate Minority Leader Chuck Schumer are working toward a deal.
Meanwhile, the CLARITY Act has also received a major boost, with the White House set to intervene in the clash between the banking and crypto industry over the stablecoin yield ban provision in the crypto bill. The White House will meet with banking and crypto executives next Monday, a move that could lead to an agreement ahead of the Banking Committee’s markup of its portion of the crypto bill.
Senator Cynthia Lummis, a ranking member of the Banking Committee, said it was encouraging to see the crypto market structure bill pass the Senate Agriculture Committee. She added that they are one step closer to getting the legislation to President Trump’s desk and that she looks forward to working with her colleagues to make the U.S. the crypto capital.
Absence of Ethics Provisions Remain A Concern For Democrats
The absence of ethics provisions relating to Trump’s involvement in crypto remains a concern for democrats and looks to be the primary reason they voted against the CLARITY Act today. Senator Michael Bennet proposed an amendment to the crypto bill that would bar the president, vice president, all federal elected officials, and certain family members from having direct ties to crypto. However, the committee voted against this amendment.
During today’s markup, Senator Amy Klobuchar noted that they have made progress on the CLARITY Act, but believes they are not yet done. She stated that the main issues are ethics regarding public officials, protecting the CFTC’s independence, and strengthening consumer protections.
Senator Cory Booker said the White House has made bipartisan negotiations more difficult, accusing Trump of profiting from crypto by launching the Solana meme coin TRUMP. Senator Adam Schiff, another Democrat, agreed on including ethics provisions in the bill but argued that it should include all federal officials rather than just targeting a particular office.
The CLARITY Act is at risk of facing a setback on the Senate floor due to the ethics provisions. This was notably an issue when Congress deliberated on the GENIUS Act, with Democrat senators such as Elizabeth Warren raising concerns of Trump’s crypto ties.
Source: https://coingape.com/clarity-act-advances-as-senate-ag-committee-votes-in-favor-of-crypto-bill/
