Senate advances CLARITY Act

The Senate Banking Committee advanced the CLARITY Act on May 14, sending a bipartisan crypto market-structure bill toward the full Senate after a 15-9 vote. The legislation would set a framework for dividing oversight of digital assets between the Securities and Exchange Commission and the Commodity Futures Trading Commission. Senate Banking Committee Republicans described the bill as a way to establish “clear, enforceable guardrails” for digital-asset markets, while opponents warned it could weaken investor protections. ### Which agencies would regulate what under the bill? The CLARITY Act would give the CFTC a central role in regulating “digital commodities” and related intermediaries, while preserving SEC authority over some primary-market crypto transactions and over tokens that still meet the definition of securities. A Congressional Research Service overview of the House bill said the measure creates a limited exemption from SEC registration requirements for certain fundraising activity and defines a digital commodity as a digital asset whose value is “intrinsically linked” to blockchain use. (cnbc.com) Congress.gov’s text for H.R. 3633 says the bill is formally titled the “Digital Asset Market Clarity Act of 2025,” or the “CLARITY Act of 2025.” The House version was received in the Senate on Sept. 18, 2025, and referred to the Senate Banking Committee. ### Who backed the Senate committee vote? CNBC reported that all 13 Republicans on the committee voted for the bill, joined by Democratic Senators Ruben Gallego of Arizona and Angela Alsobrooks of Maryland. (congress.gov) That produced the 15-9 margin that moved the legislation out of committee. Senate Banking Committee Chairman Tim Scott, Senator Cynthia Lummis and Senator Thom Tillis released the market-structure text ahead of markup and said it reflected continued negotiations with Democratic colleagues and input from regulators, law enforcement, financial institutions, innovators and consumer advocates. (congress.gov) (cnbc.com) ### What do supporters say the bill is supposed to fix? The Senate Banking Committee majority said on May 12 that the bill would “protect consumers and investors, counter illicit finance and national security threats, and support responsible innovation in the United States.” A separate committee fact sheet released in January said the measure was intended to establish a clear regulatory framework for digital assets after months of bipartisan negotiations. (banking.senate.gov) A CRS analysis said the bill is designed to redefine the roles of the SEC and CFTC in digital-asset markets. That question has been central to years of disputes over whether many tokens should be treated as securities or commodities. ### Why are crypto firms watching the SEC-CFTC split so closely? For crypto firms, the agency split affects which rules apply to token issuance, exchange registration, disclosures and enforcement. (banking.senate.gov) Forbes reported that the bill would allow most crypto tokens to be classified as digital commodities overseen by the CFTC, while a smaller subset would remain with the SEC. (congress.gov) That distinction matters because the SEC and CFTC have different mandates, rulebooks and enforcement histories. The bill’s supporters argue that clearer statutory lines would reduce uncertainty that has hung over exchanges, token issuers and decentralized-finance projects, according to the Senate Banking Committee’s fact sheet and CRS summaries. (forbes.com) ### What happens next in the Senate? The full Senate is the next stop for the bill. Crypto Times reported that the measure will need 60 votes to overcome a filibuster, meaning additional Democratic support would be required beyond the two committee Democrats who voted yes. The House already passed its version of the legislation in 2025, according to Congress.gov and CNBC. (banking.senate.gov) If the Senate approves a version, lawmakers would still need to reconcile any differences before sending a final bill to President Donald Trump. (congress.gov) (cryptotimes.io)