Senate Crypto Bill Clears Key Hurdle as Ethics Debate Looms Over Final Vote
- The Senate Banking Committee advanced the CLARITY Act with support from two Democrats despite unresolved disputes over ethics and anti-money laundering safeguards.
- Concerns surrounding President Trump’s family crypto ventures remain a key obstacle as lawmakers negotiate restrictions on digital asset dealings by federal officials.
- Crypto firms welcomed the committee vote, while banking groups continued pushing for tighter rules around stablecoin rewards and deposit protections.
The Senate Banking Committee has voted 15-9 to advance the CLARITY Act, a major cryptocurrency market structure bill that would establish regulatory oversight for digital assets in the United States. Two Democratic senators, Ruben Gallego and Angela Alsobrooks, joined Republicans in backing the measure, although both warned they may not support the legislation during a future full Senate vote.
The legislation aims to clarify how cryptocurrencies are regulated by defining whether digital tokens should be treated as securities, commodities or other asset types. Supporters argue the framework would provide long-awaited certainty for the crypto industry after years of regulatory ambiguity.
Related: Ripple CEO Says Crypto Bill Faces Crucial Two-Week Window in U.S. Senate
Democrats Push for Tougher Safeguards
Despite the committee vote, negotiations remain ongoing around anti-money laundering measures and ethics provisions linked to federal officials’ involvement in digital assets. Democratic lawmakers have raised concerns about President Donald Trump and his family’s crypto ventures, with Gallego stating he would oppose the bill on the Senate floor if ethics language was not strengthened.
Proposed provisions would restrict the president, vice president and other federal officials, along with their families, from conducting certain crypto-related financial transactions. Alsobrooks said her support for advancing the legislation reflected a willingness to continue negotiations rather than backing the bill outright.
It does not mean I will be voting for the passage of the CLARITY Act on the floor… We still have work to do.
Angela Alsobrooks, Democratic Senator
The crypto sector welcomed the committee vote, while banking groups continued lobbying for tighter stablecoin restrictions, warning the bill could draw deposits away from traditional lenders.
Related: JPMorgan Brings Wall Street to Ethereum With New Tokenised Treasury Fund
The post Senate Crypto Bill Clears Key Hurdle as Ethics Debate Looms Over Final Vote appeared first on Crypto News Australia.
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