Senate Advances Landmark Crypto Bill
The Senate Banking Committee voted Thursday to advance the Clarity Act to the full Senate floor, marking a major step forward for legislation designed to establish clearer rules for the U.S. crypto industry.
If eventually approved by the Senate and signed into law by President Donald Trump, the bill would formally legalize and regulate most cryptocurrency activity across the country.
The committee vote exposed growing divisions among Democrats over crypto regulation. While every Republican member supported the legislation, only two Democrats - Ruben Gallego and Angela Alsobrooks - voted in favor of advancing the bill.
All other Democratic committee members voted against it.
Democrats Split Over Trump’s Crypto Ties
The debate surrounding the Clarity Act has become increasingly tied to concerns about Trump’s expanding involvement in crypto businesses.
Both Gallego and Alsobrooks had previously suggested they would withhold support unless lawmakers reached an agreement on stricter ethics language related to elected officials and crypto ventures.
Despite no final agreement being completed before Thursday’s vote, both senators ultimately backed the legislation.
During the hearing, Gallego emphasized that his support could still change before the final Senate vote.
He also warned that if negotiations fail before the floor vote, he would not hesitate to oppose the bill later.
Alsobrooks’ office later stated that she supported the measure because of “good faith negotiations” that are still ongoing behind the scenes regarding ethics provisions.
Trump’s Crypto Ventures Continue Drawing Scrutiny
Concerns from Democrats largely center around Trump’s growing involvement in digital asset projects since returning to office.
The president helped launch World Liberty Financial, a crypto-focused venture that has reportedly secured international business deals. Trump also launched a meme coin shortly before his inauguration, which rapidly surged to a valuation near $80 billion before later collapsing.
Last month, Trump additionally hosted top holders of the token at Mar-a-Lago during a private gathering where discussions reportedly included geopolitical topics such as the Iran conflict.
Critics argue the Clarity Act could indirectly benefit Trump-linked crypto businesses if ethical safeguards are not strengthened before the bill reaches the Senate floor.
Crypto Industry Pressure Influenced the Vote
Thursday’s committee vote also highlighted the crypto industry’s growing political influence in Washington.
Crypto advocacy organization Stand With Crypto announced earlier this week that lawmakers’ votes on the Clarity Act would directly affect their industry ratings ahead of the 2026 midterm elections.
Gallego and Alsobrooks both currently maintain high ratings from the organization, while crypto-backed political action committees continue spending aggressively to support pro-crypto candidates.
The industry’s political machine has expanded rapidly since the 2024 election cycle, with crypto super PAC Fairshake reportedly preparing to deploy more than $100 million during upcoming elections.
Committee Hearing Turned Combative
The hearing itself became increasingly tense as procedural disputes erupted between Republicans and Democrats.
Committee Chairman Tim Scott refused to allow votes on several proposed amendments that could have divided Republican lawmakers.
One blocked amendment focused on stablecoin yield rules, an issue that has created a long-running conflict between traditional banking groups and crypto companies. Another proposed amendment involved changes to decentralized finance provisions requested by law enforcement agencies.
Democrats accused Scott of selectively avoiding politically difficult votes.
Scott defended his actions by citing technical drafting issues, although Democrats argued similar amendments were still allowed to proceed.
Full Senate Vote Faces Major Hurdles
Although the Clarity Act cleared committee, the legislation still faces a difficult path forward in the full Senate.
The bill will likely require support from at least seven Democratic senators in order to pass, meaning negotiations over ethics provisions, stablecoin regulation, and DeFi oversight are expected to intensify in the coming weeks.
For the crypto industry, however, Thursday’s vote already represents one of the strongest signs yet that Congress may finally move toward comprehensive digital asset legislation after years of regulatory uncertainty.
