Senate Banking Committee Passes CLARITY Act 15-9
The bill advanced to the Senate floor after a 15-9 committee vote with two Democratic yes votes.
The Senate Banking Committee advanced the Digital Asset Market Clarity Act (CLARITY Act) on a 15-9 vote, sending the bill to the full Senate floor. Two Democrats — Mark Warner and Angela Alsobrooks — joined the Republican majority.
The markup followed a draft preview earlier in the week and considered more than 130 amendments. Senator John Kennedy's yes vote was confirmed on the record. The committee passed the bill 15-9 after roughly four hours of debate.
The CLARITY Act establishes a federal framework for digital assets by dividing jurisdiction between the SEC and the CFTC. Digital commodities sit with the CFTC; digital securities remain with the SEC. The bill also codifies disclosure and custody rules and includes non-custodial protocol language for open-source software publishers and node operators.
The bill heads to the Senate floor, where it needs 60 votes to pass under standard rules. A floor vote timeline has not been confirmed.
Disclaimer: Content is for informational and educational purposes only and does not constitute financial, investment, legal, or other professional advice. No representations or warranties are made as to accuracy, completeness, or timeliness. Use of this content is at your own risk, and you should consult a qualified professional before making decisions. No fiduciary or advisory relationship is created
Senate Banking Releases CLARITY Act Draft Ahead of Thursday Markup
The nine-title bill separates SEC and CFTC jurisdiction, introduces Regulation Crypto for ancillary assets, and bans deposit-like interest on stablecoins.
Senate Banking Committee Chairman Tim Scott released the latest draft of the Digital Asset Market Clarity Act ahead of a markup scheduled for Thursday, May 14. The White House is targeting July 4 for House passage, with four working Senate weeks in June reserved for Senate floor consideration. The nine-title bill draws a firm line between the SEC and CFTC by distinguishing between digital commodities and ancillary assets.
Ancillary assets are coined as network tokens whose value depends on entrepreneurial or managerial efforts. A new exemption called Regulation Crypto would allow ancillary asset issuers to raise capital from retail investors without full securities registration, capped at $50 million per year over four years or 10% of outstanding asset value, with a hard ceiling of $200 million.
On DeFi, the bill defines a protocol as decentralized only if no single person has the practical ability to control, alter, or censor its operations. The bill's most contested provision, Section 404, prohibits covered digital asset service providers from paying passive, deposit-like interest on payment stablecoin balances. The exact contours of permissible yield programs will be left to joint rulemaking by the SEC, CFTC, and Treasury.
Disclaimer: Content is for informational and educational purposes only and does not constitute financial, investment, legal, or other professional advice. No representations or warranties are made as to accuracy, completeness, or timeliness. Use of this content is at your own risk, and you should consult a qualified professional before making decisions. No fiduciary or advisory relationship is created