The Republican-led Senate Banking Committee on Thursday advanced the long-awaited Clarity Act, marking one of the most significant congressional steps yet toward establishing a formal regulatory framework for digital assets in the United States.
The legislation passed out of committee with support from all Republican members alongside Democratic Senators Ruben Gallego and Angela Alsobrooks, giving the crypto industry a major political victory after years of lobbying and regulatory uncertainty.
The bill now heads to the full Senate, where lawmakers are expected to face intense debate over consumer protections, anti-money laundering rules, and the growing influence of cryptocurrency firms in Washington.
The Clarity Act seeks to define when digital assets should be regulated as securities or commodities, helping resolve long-running jurisdictional disputes between the U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission.
READ: What is the Clarity Act? Senate panel advances new crypto regulation bill (May 12, 2026)
Supporters say the measure could provide the legal certainty needed for broader adoption of cryptocurrencies, stablecoins, and blockchain-based financial products.
“This legislation does not take sides between traditional finance and new technology,” Senate Banking
The Senate Banking Committee advanced the Clarity Act, marking a major step toward establishing U.S. cryptocurrency regulations.
Committee Chairman Tim Scott said during the hearing.
The crypto industry has aggressively pushed for the bill, spending more than $119 million backing pro-crypto candidates during the 2024 election cycle, according to Reuters.
One of the most contentious issues involves stablecoins, digital tokens typically pegged to the U.S. dollar. Banks have opposed provisions allowing crypto firms to offer certain rewards tied to stablecoin activity, arguing the measure could encourage consumers to shift deposits away from traditional banking institutions.
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Several Democrats, led by Elizabeth Warren, argued the legislation remains too favorable to the crypto industry and lacks stronger safeguards against illicit finance and political conflicts of interest.
“Our job is not to advance a pro-industry crypto bill,” Warren said during committee debate. The legislation also arrives as President Donald Trump continues positioning himself as supportive of cryptocurrency expansion during his second term. Trump previously called for the United States to become the “crypto capital of the world” and has prioritized digital asset reform within his administration.
Industry analysts say the bill could reshape the future of crypto regulation in the United States if it clears Congress, particularly as other global financial centers move to establish clearer rules for blockchain-based finance. Still, uncertainty remains over whether the legislation can secure enough bipartisan support to pass the full Senate before the 2026 midterm elections.