CLARITY Act Clears Senate Banking Committee in Bipartisan 15-9 Vote

The U.S. Senate Banking Committee advanced the Digital Asset Market CLARITY Act Thursday in a 15-9 bipartisan vote, the biggest step forward yet for the market structure bill that would divide digital-asset oversight between the SEC and the CFTC.

The outcome was in doubt for much of the session. Democrats and Republicans traded barbs over ethics provisions, stablecoin yield rules, and the Trump family’s crypto ties. But Chairman Tim Scott (R-SC) broke the logjam by reinstating several amendments he had earlier ruled out of order, including a DeFi compromise from Senator Cynthia Lummis (R-WY) that was adopted 18-6 with support from Senators Mark Warner, Catherine Cortez Masto, and Angela Alsobrooks on the Democratic side.

This story is an excerpt from the Unchained Daily newsletter.

That maneuver pulled two Democrats across the aisle on the final vote. Ruben Gallego (D-AZ) and Angela Alsobrooks (D-MD) joined all 13 Republicans, giving the bill the bipartisan stamp it needed. Gallego said in a statement that “serious, bipartisan negotiations” had narrowed the gap, but made clear his floor vote is not guaranteed: the ethics provision and law-enforcement issues still need to be resolved.

Senator Elizabeth Warren (D-MA) led the opposition throughout, calling the bill “a bill written by the crypto industry for the crypto industry” that “blows a hole” in securities law dating to 1929. She accused Republicans of advancing a framework that helps “the President of the United States’ crypto grift.” An amendment from Senator Chris Van Hollen to bar the president, vice president, and members of Congress from crypto business ties was voted down 11-13.

Senator Warner (D-VA) offered the day’s most quotable line, saying he had been in “crypto hell the last couple months” and hoped to “get to crypto heaven” but was currently in “crypto purgatory.” He helped shape key language but kept leverage for later stages. A separate AI sandbox amendment from Senator Mike Rounds passed 15-9 with bipartisan backing.

The bill now enters its most complex phase. It must be merged with a separate version advanced by the Senate Agriculture Committee in January, then survive a 60-vote floor test. The ethics provision Democrats are demanding falls outside the Banking Committee’s jurisdiction and must be attached before the floor vote. Cody Carbone, head of the Digital Chamber, told reporters the ethics deal will likely land before the bill hits the floor. Senator Kirsten Gillibrand has said the floor vote needs to happen by August.

Summer Mersinger, CEO of the Blockchain Association, called it “a defining moment for American leadership.” Ripple CEO Brad Garlinghouse said Congress should “advance market structure through CLARITY” and called the committee vote “incredible leadership.”