CLARITY Act Advances as Senate Banking Committee Approves Crypto Bill

The CLARITY Act has advanced after the U.S. Senate Banking Committee voted in favor of the crypto bill at today’s markup. The bill will now head to the Senate floor for consideration, as it moves one step closer to becoming law, in what will represent a major win for the crypto industry.

Senate Banking Committee Votes In Favor Of Advancing CLARITY Act

At the Senate Banking hearing, the committee voted 15 to 9 in favor of advancing the CLARITY Act to the full Senate. The crypto bill received bipartisan support, with two Democratic Senators, Ruben Gallego and Angela Alsobrooks, voting in favor.

The vote to advance the bill followed comments from both Republican and Democratic members of the committee and votes on the proposed amendments. Notably, anti-crypto Senator Elizabeth Warren criticized the bill, calling it a bill for the crypto industry, by the crypto industry. The senator also indicated that the bill wasn’t a priority and that it would only further enrich crypto stakeholders.

The senator also said that the CLARITY Act will only further enable fraud within the crypto ecosystem. As CoinGape reported, Senator Warren proposed amendments to the crypto bill that would block the Fed from issuing master accounts to crypto firms.

Meanwhile, pro-crypto Senator Cynthia Lummis countered this point, noting that the regulation includes provisions to curb illicit activity in the crypto space. She also noted how it will promote financial freedom and American innovation. Republican Senator Thom Tillis also backed Senator Lummis’ points, noting that this was why the bill has gotten support from key stakeholders, including law enforcement groups.

It is worth noting that a proposed ethics provision came up during the CLARITY Act, with Senator Chris Van Hollen proposing that the bill prohibit the President, Vice President, members of Congress, senior officials, and their families from owning, promoting, or affiliating with crypto issuers or platforms. However, the proposed amendment failed to pass on a partisan vote.

What’s Next For The Crypto Bill?

Following the Senate Banking Committee’s vote to advance the CLARITY Act, the Senate will now move to merge the crypto bill with the Senate Agriculture Committee’s Digital Commodity Intermediaries Act (DCIA), which they advanced in January. The DCIA focuses on the CFTC and how it will regulate crypto commodities.

Once the merger happens, Majority Leader Senator John Thune will need to schedule floor time for the crypto bill, which will open it to floor debate. Once that happens, the bill will need a simple majority to advance from the Senate, although it would need the 60-vote threshold to invoke cloture and end debate.

The U.S. House will still need to deliberate on the Senate-passed CLARITY Act and reconcile it with its version, which it passed last year. Following a reconciliation of the two versions of the bill, both chambers will need to approve the final version before it heads to U.S. President Donald Trump’s desk for his signature.