The U.S. Senate Banking Committee approved the CLARITY Act by a vote of 15 to 9.
This legislation aims to establish comprehensive federal regulation of the cryptocurrency market and delineates the powers of the SEC and CFTC.
The bill's future remains uncertain. Democrats are calling for revisions to enhance measures against illicit financing and to introduce restrictions to prevent potential conflicts of interest among politicians. Senators Ruben Gallego and Angela Olbrooks indicated that approval in committee does not guarantee their support in the full Senate vote.
Analysts at TD Cowen, led by Jared Seiberg, anticipated the approval but expressed doubts about the initiative's future success.
“Committee approval does not mean the bill will pass through the entire Senate. Democrats may support the bill but vote against it in the full session if their amendments are not considered,” Seiberg said.
There were specific disputes regarding provisions on stablecoins. Banks opposed wording that would allow crypto companies to pay users rewards for holding such assets.
Before the vote, lawmakers considered a compromise: it permits rewards for specific actions involving “stablecoins” but prohibits interest income for their passive holding.
Committee Chairman Tim Scott allowed for a late compromise on contentious points but rejected several other Democratic amendments.
The bill will undergo further review in the Senate. After that, lawmakers must reconcile the final version with the House of Representatives before sending it to the President for signature.
Notably, prior to the vote, the CLARITY Act received over 100 comments, with 40 prepared by Senator Elizabeth Warren. Among her proposals was a ban on the Federal Reserve opening master accounts for crypto companies.