The CLARITY Act cleared the Senate Banking Committee 15-9 Thursday, sending crypto stocks and tokens surging.
Democrats Split On Crypto Bill
The vote received bipartisan support, with Democratic Senators Ruben Gallego (D-AZ) and Angela Alsobrooks (D-MD) breaking ranks to vote in favor alongside all Republican committee members.
Angela Alsobrooks clarified that she would not support the bill on the Senate floor unless lawmakers address the remaining issues.
She emphasized her nine months of negotiations working toward regulating digital assets in a way that protects consumers and reduces deposit flight risk.
“In recognition of that good faith, I have voted yes to advance the bill today,” Alsobrooks stated.
Both Gallego and Alsobrooks had previously indicated they would not support the bill unless language limiting President Donald Trump’s personal crypto ventures was included. No such deal has been reached.
Banking Industry Concerns Dismissed
The vote happened despite Sen. Catherine Cortez Masto (D-NV) attempting to resurrect an amendment by Sens. Jack Reed (D-RI) and Tina Smith (D-NM) addressing the banking industry’s concerns about deposit flight. Chairman Tim Scott (R-SC) had previously ruled the amendment out of order.
State bank organizations have filed letters to lawmakers, and bankers sent some 8,000 letters to Senators expressing concerns that stablecoin yield provisions remain too tilted toward the crypto industry.
What Happens Next
The bill now heads to the Senate floor, where negotiators will work to merge the legislation with the Senate Agriculture Committee’s version.
After the Senate approves the bill, lawmakers must reconcile it with the House version before sending it to President Trump’s desk.
The legislation would formally legalize most crypto activity in the United States, establishing clear regulatory frameworks for digital assets that the industry has sought for years.
Market Reaction Across Crypto
Bitcoin (CRYPTO: BTC) surged to $81,000 following the vote. XRP (CRYPTO: XRP) jumped 4% as traders bet on regulatory clarity benefiting the broader altcoin market.
Coinbase (NASDAQ:COIN) led crypto stock gains, up 9%, as the exchange stands to benefit significantly from clearer rules.
Strategy Inc. (NASDAQ:MSTR) rallied 8% as the bill’s passage would provide regulatory certainty for corporate Bitcoin treasury strategies. BMNR (NASDAQ:BMNR) surged 7% on broader risk-on sentiment sweeping through growth stocks.
The 15-9 vote represents the biggest regulatory hurdle cleared for crypto legislation, with only Senate floor approval and House reconciliation remaining before the bill can become law.
Image: Shutterstock
Recent Comments