US Senate committee weighs crypto bill in milestone for digital assets
The U.S. Senate Banking Committee advanced the Clarity Act, a crypto regulation bill, with bipartisan support, marking a milestone for digital asset legislation despite ongoing disputes over stablecoin provisions and anti-money laundering concerns. The bill now moves to the full Senate, where its passage remains uncertain amid lobbying efforts from banks, crypto companies, and political pressure, including from former President Trump’s administration.
The Republican-led Senate Banking Committee advanced the Clarity Act on May 14, a landmark bill aimed at regulating cryptocurrencies in the U.S. The legislation, supported by all Republicans and two Democrats—Arizona Sen. Ruben Gallego and Maryland Sen. Angela Alsobrooks—now proceeds to the full Senate, though its final passage faces uncertainty. The bill clarifies regulatory jurisdiction over digital assets, defining when crypto tokens qualify as securities or commodities, a long-sought goal for the industry. Tensions persisted over stablecoin provisions, with banks opposing rewards offered by crypto firms and Democrats criticizing weak anti-money laundering measures. A bipartisan compromise was reached late in the hearing, but amendments—including one on stablecoin yields—were rejected by Chairman Sen. Tim Scott. Scott emphasized the bill’s neutrality, stating it avoids favoring traditional finance or crypto technology. The crypto industry has invested heavily in lobbying, spending over $119 million in 2024 to support pro-crypto candidates and advance the bill, which aligns with President Trump’s policy priorities. The White House has actively pushed for its passage, framing it as essential for U.S. digital asset leadership. If the Senate fails to act before November’s midterms, the bill’s chances could diminish, particularly if Democrats regain control of the House. Banks, led by the American Bankers Association, have mounted a final push to tighten stablecoin language, warning of unfair competition for deposits. Meanwhile, industry advocates, like Solana Policy Institute CEO Miller Whitehouse-Levine, called the advancement a historic achievement after years of delays. The bill’s fate now hinges on Senate floor negotiations and political will amid divided interests.
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