Clarity Act Moves Forward After 15-9 Committee Vote

Senate Banking Committee PASSES the Clarity Act in 15-9 vote.

Sen. Cynthia Lummis called the proposal “the hardest piece of legislation” of her career. She said the bill fits new digital assets into an older regulatory system. The text splits oversight between the SEC and the CFTC and sets rules for exchanges, brokers, and custodians.

The committee rejected several Democratic amendments during the markup session. Sen. Elizabeth Warren opposed the bill and called it “a bill written by the crypto industry.” She argued that the draft weakens securities law protections that date to 1929.

Warren also warned that the bill allows banks to increase crypto exposure. She linked that risk to practices before the 2008 financial crisis. Republicans voted down her amendments in 11-13 votes.

Ethics, Sanctions, and DeFi Debates Shape Vote

Democrats raised concerns about illicit finance and stablecoins during the hearing. Sen. Jack Reed said Iranian actors use stablecoins to buy drone components. He sought authority for regulators to block foreign illicit stablecoin flows, but the amendment failed.

Sen. Chris Van Hollen cited estimates that over $150 billion moved through illicit wallets last year. He proposed penalties for releasing DeFi protocols designed for money laundering. Republicans rejected his measure and said current criminal laws already cover such conduct.

Ethics issues tied to President Donald Trump also shaped debate. Van Hollen proposed barring elected officials from crypto business ties. Sen. Bernie Moreno opposed the amendment and said it belonged in the Judiciary Committee, and the panel defeated it 11-13.

A key vote came on Lummis Amendment 122 regarding DeFi safe harbors. The committee adopted the amendment 18-6 after a technical revision. Warner, Cortez Masto, and Alsobrooks joined Republicans to support the compromise language.

Earlier, Chair Scott limited the number of amendments under committee rules. He later reinstated selected proposals to secure bipartisan backing. By the final vote, Gallego and Alsobrooks provided the Democratic support needed for the 15-9 outcome.

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