In a significant step for digital asset regulation, the Senate Banking Committee approved the CLARITY Act with a 15-9 vote on May 14. The bill, formally known as the Digital Asset Market Clarity Act, now heads to a full Senate vote. The committee’s decision saw Arizona Democrat Ruben Gallego joining all 13 Republicans, marking the first bipartisan committee passage for the legislation since its introduction in May 2025.
Committee Chairman Tim Scott emphasized that the bill modernizes outdated regulations while enhancing law enforcement capabilities. Senator Cynthia Lummis described it as the most challenging legislative effort she has undertaken. The CLARITY Act had previously passed the House with a 294-134 vote in July 2025 but faced a nearly ten-month delay in the Senate over disagreements on stablecoin yield and jurisdictional issues between the SEC and CFTC.
Senator Elizabeth Warren led Democratic opposition, arguing the bill is not ready due to weak anti-money laundering provisions and unresolved ethics rules concerning officials profiting from crypto. She referenced the Tornado Cash case to highlight regulatory gaps. Warren proposed two amendments during the markup—one to restrict risky assets in retirement accounts and another on sanctions authority—but both failed. Senator Mike Rounds introduced an amendment for AI regulatory sandboxes, which was also not included.
The final committee version includes Senator John Kennedy’s fiduciary duty provision, added after he became the decisive Republican supporter. A key compromise on stablecoin yield, brokered by Senators Thom Tillis and Angela Alsobrooks, bans passive yield but allows activity-based rewards. Coinbase CEO Brian Armstrong endorsed the markup process in a terse social media post.
The CLARITY Act now requires 60 votes to overcome a filibuster in the full Senate, with only seven more Democrats needed beyond Gallego. Senators Lummis and Bernie Moreno warned that missing the Memorial Day recess could delay the bill until after the 2026 midterms. Polymarket odds for the bill’s enactment in 2026 rose sharply after the committee vote, and the White House has set a July 4 deadline for President Trump’s signature.