The U.S. Senate Agriculture Committee has made significant progress on the proposed CLARITY Act, advancing it with a narrow vote of 12-11. This advancement marks a crucial step in the ongoing development of cryptocurrency regulations in the United States.
Under the leadership of Chairman John Boozman, the committee”s decision comes after a markup session lasting just over an hour. The vote, which followed mostly party lines, rejected several amendments aimed at addressing ethical concerns and providing bankruptcy assistance.
The legislation aims to clarify the regulatory landscape for digital assets by assigning the Commodity Futures Trading Commission (CFTC) the primary oversight of digital commodity spot markets, including assets like Bitcoin and Ethereum. Meanwhile, the Securities and Exchange Commission (SEC) will retain authority over digital assets classified as investment contracts.
Advocates of the bill argue that it will delineate regulatory responsibilities, establish registration requirements for intermediaries, and enhance consumer protections through measures such as asset segregation and mandatory disclosures.
During the markup, some committee members expressed concerns regarding ethical issues in the proposed framework. Senator Cory Booker emphasized the need to avoid inadvertently criminalizing software development while also advocating for the importance of self-custody and open-source code in the cryptocurrency ecosystem. He criticized the current draft for diverging from a previously negotiated bipartisan version, attributing these changes to political pressures.
Several proposed amendments aimed at addressing ethical concerns were voted down, including a motion by Senator Michael Bennet to prohibit elected officials from profiting from digital assets during their tenure. Another amendment from Senator Dick Durbin sought to prevent federal support for crypto intermediaries facing bankruptcy, which was also rejected, as Boozman indicated that the bill does not authorize bailouts.
The advancement of the CLARITY Act represents a milestone in a legislative process that has taken multiple congressional sessions to develop. While the House passed its version of the bill with bipartisan support in July 2025, progress in the Senate had stalled until now.
As discussions continue, the Senate Banking Committee is still working on its version of the legislation. A proposed markup was postponed earlier this year due to disagreements and pushback from the industry, particularly concerning provisions that could limit yield on payment stablecoins.
Once the Banking Committee finalizes its draft, the two Senate versions will need to be reconciled before moving to the Senate floor for a vote. If the Senate”s version differs from that of the House, a conference committee will be necessary to resolve any discrepancies before the bill can be presented to the president for approval.
