The Senate Banking Committee approved a version of the Clarity Act in a 15-9 vote, moving long-awaited cryptocurrency regulation legislation to the full Senate, Banking Dive reported. Two Democrats, Sens. Angela Alsobrooks of Maryland and Ruben Gallego of Arizona, joined the committee’s Republicans in advancing the bill, which now needs 60 votes to be fully considered and must be reconciled with a House bill passed last July.
The legislation advanced with stablecoin-yield language intact. The provision, written by Alsobrooks and Sen. Thom Tillis, bars crypto firms from offering rewards on stablecoin balances that are “economically or functionally equivalent” to interest-bearing bank deposits. Banking trade groups have argued that third-party arrangements could still allow stablecoin issuers to work around the ban and draw deposits away from banks.
The markup also exposed unresolved Democratic concerns. Senate Banking Committee Chair Tim Scott allowed some previously discarded amendments back into the bill but declined to permit votes on amendments related to stablecoin yields and anti-money laundering. Sen. Elizabeth Warren criticized the decision, while Scott said the amendments that received consideration reflected bipartisan concerns.
The bill’s path remains uncertain even after the committee vote. Banking trade groups said the Clarity Act should be strengthened further to tighten restrictions on interest-like stablecoin rewards, while some Democrats are also pushing to restrict elected officials from certain crypto-industry activities. The committee approval gives the bill momentum, but a floor vote will determine whether that support can hold in the full Senate.
