Senate advances CLARITY Act 15–9

The Senate Banking Committee voted 15-9 on May 14 to advance the Digital Asset Market Clarity Act, the furthest the Senate has moved a broad crypto market-structure bill. Chairman Tim Scott said the measure would create “clear rules of the road for digital assets,” while Ranking Member Elizabeth Warren called it “a pro-industry crypto bill” that would put consumers and the financial system at risk. The vote sends H.R. 3633 to the full Senate after months of negotiations between Republicans and several Democrats. Two Democrats — Ruben Gallego of Arizona and Angela Alsobrooks of Maryland — joined all Republicans on the panel in backing the bill. ### Why was a House bill moving through a Senate committee? H.R. 3633 began in the House on May 29, 2025, under sponsorship by Representative French Hill of Arkansas. The House passed the bill 294-134 on July 17, 2025, and sent it to the Senate in September, where it was referred to the Banking Committee. The committee’s May 14 action was to order the bill reported favorably with an amendment in the nature of a substitute, according to the legislative record. (banking.senate.gov) Congress.gov describes the measure as the Digital Asset Market Clarity Act of 2025. The official title says it would provide “a system of regulation of the offer and sale of digital commodities” by the Securities and Exchange Commission and the Commodity Futures Trading Commission. ### What would the bill actually do for crypto firms and exchanges? The Congressional Research Service summary says the bill would establish a federal framework for “digital commodities,” with the CFTC generally regulating digital commodity transactions, exchanges, brokers and dealers. (congress.gov) The summary also says the bill would set requirements for trade monitoring, recordkeeping and the commingling of customer assets. The CRS summary says a token could qualify for trading on an exchange if its blockchain is considered mature or decentralized under standards in the bill, or if the issuer files required reports. The bill would also exempt some digital commodities on mature blockchains from SEC registration requirements if annual sales stay below a threshold and other conditions are met, while preserving SEC authority over certain activities on alternative trading systems and national securities exchanges. (govtrack.us) The same CRS summary says digital commodity exchanges, brokers and dealers would remain subject to the Bank Secrecy Act for anti-money-laundering purposes. It also says the legislation includes provisional registration and rules for previously issued digital commodities. ### Who backed it, and who opposed it in the committee room? Tim Scott, the South Carolina Republican who chairs the committee, said the bill followed “nearly a year of good-faith bipartisan negotiations.” His office said the committee “came together” to advance a market-structure bill and that the measure now moves to the Senate floor. (govtrack.us) Elizabeth Warren, the Massachusetts Democrat who is the committee’s top Democrat, said in opening remarks on May 14 that lawmakers had not held “a single hearing on this bill.” Warren said, “Our job is not to advance a pro-industry crypto bill that will put American consumers, American investors, and our national security and our financial system at risk.” (banking.senate.gov) CNBC reported that Mark Warner, a Virginia Democrat involved in negotiations, said members would keep working through disagreements over policing bad actors and ethics language tied to elected officials’ crypto holdings. Warner said he was in “crypto purgatory” and wanted to keep working on the measure. ### Why did two Democrats matter so much? The committee has 13 Republicans, and all 13 voted yes, according to multiple reports. (banking.senate.gov) Gallego and Alsobrooks supplied the two Democratic votes that turned the outcome into a bipartisan 15-9 tally rather than a party-line committee approval. That split became one of the clearest markers from the markup because Democrats were otherwise divided over amendment procedure, consumer protections and ethics provisions. (cnbc.com) Politico and other outlets reported that the debate over amendments sharpened the divide before the final vote. ### What happens next in Congress? (cnbc.com) The next step is a Senate floor vote, because the Banking Committee has already ordered the bill reported favorably. If the full Senate passes its version, lawmakers would still need to reconcile any differences with the House-passed measure before sending legislation to President Donald Trump. (politico.com) Congress.gov lists H.R. 3633 as having passed the House in July 2025 and records the Senate Banking Committee action on May 14, 2026. The committee’s release said the bill now moves to the Senate floor, where Scott, Warren, Gallego, Alsobrooks and other senators will have another chance to shape the final text. (congress.gov) (banking.senate.gov)