The Senate Banking Committee voted Thursday to approve the CLARITY Act, advancing the sweeping crypto regulatory bill to the full Senate with bipartisan support. The legislation, which assigns the CFTC authority over digital asset spot markets and the SEC oversight of digital asset securities, now faces a floor fight where proponents need 60 votes to break a filibuster. Backers are aiming for President Biden's signature by July 4.
What the CLARITY Act actually does
The bill draws a clear jurisdictional line: the Commodity Futures Trading Commission gets spot market regulation for cryptocurrencies that aren't securities, while the Securities and Exchange Commission keeps authority over digital assets that meet the Howey test. That split has been the industry's top ask for years. It would replace the current patchwork of SEC enforcement actions and state-level money transmitter licenses with a single federal framework.
The stablecoin yield ban
A notable provision bans passive yield on stablecoin balances — meaning no more 5% APY just for holding USDC or USDT in a wallet. But activity-based rewards tied to platform transactions are still allowed. The American Bankers Association and the Bank Policy Institute opposed the bill, warning it could trigger deposit flight from traditional banks into crypto. Their lobbying didn't stop the committee vote.
Path to law: 60 votes and a July 4 target
Proponents are optimistic but realistic. Galaxy Digital puts the odds of passage at 55% this year. The Senate version must be reconciled with the House's already-passed H.R. 3633, which takes a similar but not identical approach. The July 4 deadline is ambitious — it gives lawmakers about seven weeks to navigate floor scheduling, amendments, and conference negotiations.
Political reactions
Senator Elizabeth Warren criticized the bill, arguing it could benefit Donald Trump's crypto ventures. Coinbase CEO Brian Armstrong endorsed it, saying the CLARITY Act would make the US financial system faster, cheaper, and more accessible. The bipartisan committee vote suggests some Democratic support exists, but Warren's opposition signals the left flank isn't sold.
The next concrete milestone: the Senate majority leader must schedule floor time. Then comes the 60-vote threshold, which will determine whether this bill dies or lands on Biden's desk by Independence Day.
