The U.S. Senate Banking Committee has moved the Digital Asset Market CLARITY Act one step closer to becoming law after approving the bill in a bipartisan 15-9 vote on Thursday. The decision marks one of the biggest developments yet for cryptocurrency regulation in the United States.
Two Democratic senators, Ruben Gallego of Arizona and Angela Alsobrooks of Maryland, joined Republicans in supporting the legislation. Their support highlighted growing bipartisan interest in creating clearer rules for the digital asset industry.
CLARITY Act Aims to End Regulatory Uncertainty
The proposed legislation focuses on resolving one of the crypto industry’s biggest issues: determining whether digital assets should fall under the Securities and Exchange Commission or the Commodity Futures Trading Commission.
Under the current version of the bill, many crypto spot markets would move under CFTC oversight. Major crypto companies, including Coinbase, have strongly backed this approach because they believe it would provide more predictable regulations.
Lawmakers debated the bill for more than two hours during Thursday’s markup session. Discussions centered on several key issues, including:
- Stablecoin regulation
- Decentralized finance oversight
- Ethics rules for government officials
- Crypto business conflicts of interest
Sen. Elizabeth Warren and other Democrats proposed amendments aimed at restricting financial connections between public officials and cryptocurrency companies. However, those proposals did not pass.
Crypto Markets Rally After Senate Vote
Financial markets reacted quickly after the committee approved the bill. Coinbase shares jumped nearly 8% during intraday trading, while several Bitcoin-related stocks also posted strong gains.
Bitcoin climbed above $81,000 as investors viewed the vote as a sign that Washington could finally deliver long-awaited regulatory clarity for the crypto sector.
The CLARITY Act still faces several hurdles before becoming law. The bill must pass the full Senate, align with the Senate Agriculture Committee’s version, and eventually reconcile with earlier crypto legislation approved by the House.
Even so, analysts say the bipartisan committee vote represents a major milestone for the digital asset industry. If enacted, the law could encourage institutional investment, improve compliance standards, and strengthen the United States’ role in the global cryptocurrency market.
