Senate Crypto Bill Passes Committee — But Democrats Say Ethics Must Come First

TLDR

• The Senate Banking Committee passed the Digital Asset Market Clarity Act (CLARITY) 15-9 with limited bipartisan support
• Only two Democrats voted for it; many more will be needed to overcome a Senate filibuster
• Ethics concerns around President Trump’s crypto ties remain the key sticking point
• TD Cowen raised the bill’s chances of passing to 40%, up from one-in-three
• The White House is targeting July 4 to sign the bill into law

The US Senate Banking Committee voted 15-9 on Thursday to advance the Digital Asset Market Clarity Act, known as CLARITY. The bill aims to create a federal framework for regulating the crypto industry.

Two Democrats, Senators Ruben Gallego and Angela Alsobrooks, joined 13 Republicans to move the bill forward. It now heads toward a full Senate vote, though no date has been scheduled yet.

The Senate Agriculture Committee had already advanced its portion of the bill in January. The two pieces will need to be merged into one package before a floor vote can happen.

The House previously passed its version of the bill 294 to 134, with 78 Democrats voting in favor.

The Filibuster Problem

To pass in the full Senate, the bill needs 60 votes to overcome a filibuster. That means Republicans will need a lot more Democratic support than the two votes they got in committee.

TD Cowen analyst Jaret Seiberg raised his odds of the bill passing to 40%, up from one-in-three. But he still flagged real hurdles ahead.

GSR’s Chief Legal and Strategy Officer Joshua Riezman said before the committee vote that the odds of the bill reaching the president’s desk this session were below 50%.

Coinbase’s Chief Legal Officer Paul Grewal offered a more optimistic view, saying the bill will pass this summer.

Ethics Concerns Are the Central Roadblock

Many Senate Democrats say they won’t vote for the bill without provisions addressing conflicts of interest. Their concern centers on President Trump’s personal ties to the crypto industry, including his memecoin and his family’s World Liberty Financial business.

Senator Raphael Warnock said he would not support any bill that didn’t address what he called “pure corruption” by the Trump administration over digital assets.

Senator Gallego said directly that if the ethics issue is not resolved, he will vote no when the bill reaches the Senate floor.

Banking Committee chair Tim Scott and the other 12 Republicans voted against an amendment that would have addressed Trump’s potential conflicts of interest.

TD Cowen said Republicans don’t want to take that vote ahead of the 2026 midterm elections.

What Happens Next

The Senate is in session until May 22, then returns June 1 through June 26. No vote on CLARITY has been scheduled yet.

White House crypto adviser Patrick Witt said the administration is targeting July 4 to sign the bill into law.

Separately, the House Ways and Means Committee held a closed-door session Thursday on digital asset tax policy, following the introduction of the Digital Asset PARITY Act in December 2025.

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