US Senate Committee Moves CLARITY Act Forward on Party-Line Vote
The CLARITY Act took a step forward after the US Senate Agriculture Committee approved its portion of the crypto market structure bill during a markup session.
The committee passed the Digital Commodity Intermediaries Act by a narrow 12–11 party-line vote, with Republicans supporting the bill and Democrats voting against it. This marks the first time a Senate committee has advanced part of the CLARITY Act, which aims to bring clearer rules to the US crypto industry.
The section approved by the Agriculture Committee mainly focuses on giving the Commodity Futures Trading Commission (CFTC) more authority to regulate crypto assets and intermediaries that are treated as commodities. Lawmakers discussed several amendments during the markup, but none gained bipartisan backing.
The next stage of the process now shifts to the Senate Banking Committee, which is responsible for reviewing the remaining portion of the CLARITY Act. However, the Banking Committee is not expected to hold its markup until late February or March, meaning progress could slow in the near term.
CLARITY Act Faces Ethics Debate as White House Steps In
There is also concern that a possible US government shutdown by the end of the week could further delay the legislative process, although talks are reportedly underway to avoid a prolonged shutdown. The bill also received a boost after reports that the White House plans to step in to help resolve disagreements between banks and crypto firms, especially over the stablecoin yield ban provision.
The White House is scheduled to meet with executives from both industries next week, raising hopes that a compromise could be reached before the Banking Committee begins its review. Despite this progress, ethical concerns remain a major issue for Democrats. Lawmakers have raised objections over the lack of provisions addressing former President Donald Trump’s ties to crypto-related businesses.
Senator Michael Bennet proposed an amendment to block senior government officials and their families from having direct crypto ties, but the committee rejected it.
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