The Senate Banking Committee cleared the Clarity Act on a 15-9 vote Thursday, advancing crypto’s first federal regulatory framework with two Democrats breaking ranks.
Sens. Angela Alsobrooks of Maryland and Ruben Gallego of Arizona joined 13 Republicans to pass the bill. It now heads to the full Senate, where it needs 60 votes to advance: a threshold the committee never faced, and one that won’t be easy to hit on the floor.
The stablecoin yield provision survived. Language authored by Alsobrooks and Sen. Thom Tillis, R-NC, bars crypto firms from issuing rewards on stablecoin balances “economically or functionally equivalent” to interest-bearing bank deposits. Banking trade groups said that’s not enough, warning third-party workarounds could drain deposits out of the banking system and threaten local lending.
Committee Chair Tim Scott, R-SC, blocked two Democratic amendments at Thursday’s markup: one on stablecoin yields from Sens. Jack Reed and Tina Smith, another on anti-money laundering from Sen. Catherine Cortez Masto. Sen. Elizabeth Warren challenged Scott directly: “What is the harm in letting us vote two more amendments?”
The thorniest fight may still be ahead. Democrats want language restricting elected officials from crypto-industry activity, a provision clearly aimed at World Liberty Financial, a platform with ties to the Trump family. Eric Trump called the prospect “the ultimate hypocrisy.”
The bill must also be reconciled with a House version passed last July before any of it becomes law.
— James Okafor