The U.S. Senate Banking Committee approved the CLARITY Act with a vote of 15 to 9.
The bill proposes comprehensive federal regulation of the cryptocurrency market and delineates the powers between the SEC and the CFTC.
The future of the bill remains uncertain. Democrats demand revisions to address illegal financing and to add restrictions to prevent potential conflicts of interest among politicians. Senators Ruben Gallego and Angela Alsobrooks indicated that committee approval does not guarantee their support in a full Senate vote.
Analysts at TD Cowen, led by Jaret Seiberg, anticipated the approval but doubted the initiative’s further success.
“Committee recognition does not mean the bill will pass the entire Senate. Democrats may support the bill but vote against it in the full session if their amendments are not considered,” said Seiberg.
Provisions regarding stablecoins sparked particular debate. Banks opposed the language allowing crypto companies to reward users for holding such assets.
Before the vote, lawmakers considered a compromise: it permits rewards for certain actions with “stablecoins” but prohibits interest income for passive holding.
Committee Chairman Tim Scott allowed for a late compromise on contentious points but rejected several other Democratic amendments.
The bill will undergo further consideration in the Senate. Afterward, lawmakers must reconcile the final version with the House of Representatives before sending it to the President for signing.
Prior to the vote, the CLARITY Act received over 100 comments—40 of which were prepared by Senator Elizabeth Warren. Notably, she proposed prohibiting the Federal Reserve from opening master accounts for crypto companies.