Senate Banking Committee advances Clarity Act; hurdles remain

The Senate Banking Committee voted 15-9 on Thursday to advance its version of the Clarity Act, a federal market-structure bill for crypto. The vote moves the committee’s language closer to a final Senate package but does not put the measure on the Senate floor.

Two Democrats, Sens. Ruben Gallego and Angela Alsobrooks, joined Republicans in supporting the bill. The Banking Committee text must be reconciled with a separate market-structure measure that the Senate Agriculture Committee advanced in January before a combined bill can be considered by the full Senate.

Analysts offered mixed assessments after the markup. Jaret Seiberg of TD Cowen wrote that he raised his estimate of the bill becoming law to about 40% from roughly one-in-three, citing interest among some Democrats in resolving outstanding issues. Benchmark analyst Mark Palmer wrote that the bill will need substantially more Democratic votes to reach the 60 votes required to overcome a filibuster.

Ethics and conflict-of-interest rules remain unresolved. Several Democratic senators want an amendment that would restrict certain crypto-related financial transactions by the president, vice president, other federal officials and their families. TD Cowen said Democrats are likely to demand a vote on such an amendment, and the firm suggested Republicans are reluctant to take that vote because of political optics tied to the Trump family’s involvement in crypto. During the markup, Senator Gallego warned he would oppose the bill on the Senate floor if the ethics language is not settled.

Stablecoin policy has been another major point of contention. Lawmakers, the White House, crypto firms and banking groups have debated how to regulate stablecoin payments, issuance and any program that offers rewards tied to stablecoins. Those disputes contributed to months of delay before the committee action.

Observers remain split on timing. Joshua Riezman, chief legal and strategy officer at GSR, estimated the odds of the Clarity Act reaching the president’s desk this congressional session were below 50%. By contrast, Coinbase chief legal officer Paul Grewal predicted the bill would pass this summer.

If negotiators merge the committee texts and resolve outstanding disputes, the full Senate would still need to clear procedural hurdles and secure enough votes to avoid a filibuster. Only two Democrats were recorded in favor in the Banking Committee vote, and supporters would need additional Democratic senators to reach the 60-vote threshold.

The Clarity Act aims to create a federal framework for the crypto industry, covering market structure, stablecoins and oversight of trading platforms. The measure has drawn heavy lobbying from crypto companies and banking interests as negotiators work through competing policy priorities ahead of the 2026 midterm elections.