Major Crypto Bill Finally Advances

The CLARITY Act has successfully cleared a major legislative hurdle, advancing out of the Senate Banking Committee with a 15-9 bipartisan vote. 

The bill’s passage is certainly a significant milestone for digital asset regulation in the United States. It is now heading to the full Senate for consideration. 

The vote was largely split along party lines, but two Democrats, Senators Ruben Gallego and Angela Alsobrooks, joined the unanimous Republican bloc. 

The bipartisan breakdown

The final committee tally saw 13 Republicans and 2 Democrats voting in favor, while 9 Democrats voted against the bill. 

Of course, left-leaning Senator Elizabeth Warren was among those who did not support the bill. She has been a vocal critic of the legislation’s ethics guardrail. Senator Mark Warner has also stopped short of advancing the bill despite acknowledging some positive changes. 

Republican leaders, including Senator Thom Tillis, describe the passage as a "strong bipartisan compromise" that will finally bring much-awaited regulatory certainty. 

The cost of compromise

Several amendments had to be negotiated in order to secure the necessary level of support. 

There was a significant compromise regarding an amendment from Senator Cynthia Lummis to secure the passage of the bill. Sources indicate that language referencing the Blockchain Regulatory Certainty Act (BRCA) was removed from Section 301 of the bill.

Some DeFi advocates are concerned about stripping BRCA language. According to them, this could remove critical legal protections for the sector. 

Despite these concerns, Senator Bernie Moreno has argued that Section 301 remains a work in progress. Discussions will continue in the coming weeks.

The next move 

High-level regulators, including SEC Chairman Paul Atkins, have already expressed their optimism regarding the passage of the CLARITY Act on social media. 

Atkins congratulated the Banking Committee and stated he looks forward to President Trump’s signature on the legislation. 

Industry leaders and lawmakers alike are bracing for continued debate over the "plumbing" of the U.S. financial system and the future of decentralized technology.