US Senate committee to weigh crypto bill in milestone for digital assets
The Republican-led Senate Banking Committee is scheduled to consider long-awaited cryptocurrency legislation on Thursday. The bill, which would establish regulatory guidelines for digital assets, marks a significant milestone after being stalled due to tensions between crypto firms and traditional banks.
The proposed Clarity Act aims to define which regulators have authority over the crypto sector. Thursday’s “mark-up” session—during which senators will debate, amend, and vote on moving the bill forward—will reveal whether it can secure the at least seven Democratic votes needed to pass the full Senate. Many Democrats oppose the measure, arguing its anti-money laundering protections are insufficient and that it should prohibit political officials from profiting from crypto ventures. Senator Elizabeth Warren, the committee’s top Democrat, has warned that the bill threatens national security and the broader financial system.
“If the bill passes the committee along party lines, its chances will be slim. But if one or two Democrats cross over… then it would have a real shot at passing this year,” wrote Brian Gardner, chief Washington policy strategist at Stifel, in a research note.
‘Years in the Making’
The crypto industry has aggressively lobbied for the legislation, calling it essential for the future of U.S. digital assets and necessary to resolve fundamental issues facing crypto companies. Among other provisions, the bill would clarify when crypto tokens are classified as securities, commodities, or otherwise—offering what the industry describes as much-needed legal certainty that could accelerate adoption. In 2024, the industry spent over $119 million backing pro-crypto candidates, aiming to advance the Clarity Act as well as a separate bill on dollar-backed stablecoins (which became law last year) that encourages wider use of such tokens.
“We’ve been working toward this point for years,” said Miller Whitehouse-Levine, CEO of the Solana Policy Institute, which advocates for policies promoting digital asset technology.
Banks are pushing back against a key provision in the bill, arguing it would create competition for deposits by giving crypto companies too much flexibility to offer rewards on stablecoins. Banking trade groups have mounted a last-minute effort to sway committee Republicans. On Sunday, the American Bankers Association publicly called on member CEOs to urge committee senators to tighten the stablecoin language.
Whether that effort succeeds remains unclear. A senior White House official, speaking anonymously about private discussions, said they expect all Republican committee members to vote in favor of moving the bill forward.
President Trump—who courted crypto industry donations during his campaign and whose family has profited from its own token—has made crypto reform a priority in his second administration. Reuters has reported that the White House is actively pushing for the bill’s passage.
The House passed its version of the Clarity Act last year. Analysts note that if the Senate fails to pass the bill this year, it is unlikely to become law in the foreseeable future, especially with November midterm elections potentially giving Democrats control of the House.
Source: Reuters
The post US Senate committee to weigh crypto bill in milestone for digital assets appeared first on Ethio Affairs.
