Key Takeaways
The U.S. Senate Banking Committee advanced the Digital Asset Market Clarity Act in a 15-9 vote, a landmark step toward creating a federal framework for cryptocurrency regulation that saw two Democrats join a united Republican front.
"If the largest economy in the world is going to lead on crypto - and it must - this is the moment. Let's get it done!" Ripple CEO Brad Garlinghouse said on X, reflecting broad industry support for the legislation.
The bill, which aims to divide regulatory oversight of digital assets between the Securities and Exchange Commission and the Commodity Futures Trading Commission, passed after months of negotiations. A central compromise was reached on stablecoin yields, which bans interest-like rewards on idle deposits but permits them for activities such as trading and staking. The bill also provides liability protections for software developers.
With the committee's approval, the legislation now advances to the full Senate. Proponents are pushing for a vote before the August recess, after which it would still need to pass the House of Representatives before reaching the president's desk.
Despite the bipartisan vote, the bill faced sharp criticism, most notably from Senator Elizabeth Warren (D-Mass.), who argued the legislation was "written by the crypto industry for the crypto industry" and is "just not ready."
Warren introduced several amendments that failed in close 11-13 votes. These included proposals to enhance sanctions authority against crypto mixers like Tornado Cash, prevent the use of crypto in retirement accounts, and force the release of bank supervisory records related to the financier Jeffrey Epstein, whom she noted was an early crypto backer.
An ethics amendment from Senator Chris Van Hollen (D-Md.) to prevent conflicts of interest by banning government officials from holding business ties to the crypto industry also failed 11-13.
The 15-9 vote was secured with the support of Democratic Senators Ruben Gallego and Angela Alsobrooks, who joined all 13 committee Republicans. The outcome boosted Polymarket odds for the bill's passage in 2026 from 62% to 73%, according to data from 247wallst.com.
"We met the asks of the bank lobby and the Senate," Coinbase CEO Brian Armstrong said, calling the bill a "true compromise."
The bill's passage marks a significant win for the crypto industry and companies like Ripple, Circle, and Coinbase, which have lobbied heavily for regulatory clarity. Circle's Chief Strategy Officer Dante Disparte said the vote marks "meaningful, bipartisan progress toward comprehensive digital asset regulation in the United States."
This article is for informational purposes only and does not constitute investment advice.
