US Senate Committee Advances CLARITY Act

US Senate Committee Advances CLARITY Act

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The CLARITY Act took a step forward after the US Senate Agriculture Committee passed its portion of the crypto market structure bill during a markup session.

The committee approved the Digital Commodity Intermediaries Act on a narrow party-line vote of 12–11, with Republicans supporting the bill and Democrats voting against it. This is the first time a Senate committee has advanced part of the CLARITY Act, which aims to bring clearer rules to the U.S. crypto industry.

The section approved by the Agriculture Committee focuses primarily on giving the Commodity Futures Trading Commission (CFTC) more powers to regulate crypto assets and intermediaries that are treated as commodities. Lawmakers discussed several amendments during the markup, but none received bipartisan support.

The next phase of the process now shifts to the Senate Banking Committee, which is responsible for reviewing the remainder of the CLARITY Act. However, the Banking Committee is not expected to maintain its increase until late February or March, meaning progress could slow in the short term.

CLARITY Act faces ethics debate as White House intervenes

There are also concerns that a possible US government shutdown by the end of the week could further delay the legislative process, although talks are reportedly underway to avoid a prolonged shutdown. The bill also gained momentum following reports that the White House plans to intervene to resolve disagreements between banks and crypto companies, especially over the ban on stablecoin yields.

The White House will meet with executives from both sectors next week, raising hopes that a compromise can be reached before the Banking Committee begins its review. Despite this progress, ethical concerns remain a major problem for Democrats. Lawmakers have raised concerns about the lack of provisions addressing former President Donald Trump’s ties to crypto-related companies.

Senator Michael Bennet proposed an amendment to prevent senior government officials and their families from having direct crypto ties, but the committee rejected it.

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