Bitcoin soared above $81,000 after the Senate Banking Committee voted to advance the Digital Asset Market Transparency Act, clearing a major hurdle for the most comprehensive cryptocurrency regulation bill in U.S. history.
On May 14, the panel approved the bill on bipartisan lines, sending the bill to the full Senate floor. The markup’s success ends 10 months of arduous negotiations and represents a monumental shift toward establishing a clear federal framework for digital assets.
Patrick Witt, executive director of the White House Presidential Advisory Council on Digital Assets, said:
“The CLARITY Act is not only good policy, it is necessary policy to ensure that the United States maintains its leadership position in global financial markets. Needless to say, the robust consumer protection and anti-illicit finance provisions contained in this law would be nothing without it.”
The path to passage of the CLARITY Act
The CLARITY Act aims to resolve a decade-old turf war between federal regulators by explicitly dividing jurisdiction over digital asset markets.
Under the newly approved document, the Commodity Futures Trading Commission (CFTC) will be given sweeping authority to regulate the crypto spot market, while the Securities and Exchange Commission (SEC) will retain oversight over primary offerings of digital asset securities and investment contracts.
Its path to passage narrowly overcame last-minute pressure from traditional banking players, including the American Bankers Association and the Bank Policy Institute.
Bankers have lobbied heavily against stablecoin fee provisions, warning that the bill could trigger a “deposit flight” from traditional financial institutions.
To secure the necessary bipartisan votes, lawmakers relied on a delicate compromise on stablecoin rewards.
The approved document explicitly prohibits platforms from offering passive yields on idle balances in stablecoins, a major win for the traditional banking sector. However, “activity-based rewards” tied to direct transactions on the platform, such as paying for gas or utilities, are allowed.
Still, the bill drew harsh criticism from some progressive lawmakers like Sen. Elizabeth Warren, who said:
“(The CLARITY Act) would accelerate the massive conflicts of interest posed by Donald Trump and his family’s crypto ventures.”
On the contrary, cryptocurrency supporters celebrated the price increase as a decisive victory that will spur the industry’s growth. Coinbase CEO Brian Armstrong said the bill will benefit Americans by making the U.S. financial system faster, cheaper and more accessible.
He added that the CLARITY Act “will also ensure that the United States leads the way in the global race to build the next generation financial system.”
What’s next for the bill?
Although the committee’s approval marks a historic milestone, the path to passage remains a daunting one.
Supporters of the CLARITY Act are aiming for a final desk signature by President Donald Trump by July 4, a virtually infallible deadline.
The immediate hurdle is the calendar. Lawmakers are about to adjourn for Memorial Day on May 21, and the clock is ticking toward the Legislature’s recess in August.
To meet the July 4 goal, the bill must first go through floor coordination with January text from the Senate Agriculture Committee before proceeding to the full Senate, which would require a 60-vote supermajority for passage.
From there, Senate leadership will need to harmonize this bill with HR 3633, the corresponding digital assets bill passed by the House in July 2025.
Despite the procedural challenges ahead, Galaxy Digital, a prominent asset management firm, said it was “cautiously optimistic that the bill has a 55% chance of becoming law in 2026.”
But Sen. Cynthia Lummis previously warned that the bill could lose momentum if it stalls at any stage. She says this could delay comprehensive crypto regulation until the end of the decade.
(Tag Translation)Bitcoin
