CLARITY Act moves forward amid split over crypto market rules
The bill restricts passive stablecoin yields while allowing limited activity-based rewards, reflecting a compromise between banking and crypto industry pressures.
The United States Senate Banking, Housing, and Urban Affairs Committee has advanced the Digital Asset Market Clarity Act in a 15–9 vote, marking another step towards establishing a federal framework for digital asset markets.
Committee Chair Tim Scott said the bill is intended to establish clearer rules for digital assets, strengthen consumer protection, support innovation and keep digital asset activity within the United States. The committee said the legislation now moves to the Senate floor.
The vote followed months of negotiations and highlighted continuing political divisions over the scope of US crypto regulation. Supporters argue that the bill would provide long-awaited market structure rules, while critics remain concerned about consumer protection, enforcement powers, conflicts of interest and the treatment of decentralised finance.
A central issue in the revised text is how to regulate stablecoin-related activity. The bill seeks to prevent stablecoins from functioning like bank deposits by limiting passive yield on customer holdings, while still allowing certain rewards linked to user activity or platform use.
The bill also continues debate over decentralised finance, including how far regulation should extend to developers, protocols and infrastructure providers that do not directly custody user funds.
Ethics provisions were among the most contested issues during the markup process, with lawmakers divided over whether and how to restrict potential conflicts of interest involving public officials and cryptoasset activities.
Further hurdles remain before the legislation can become law. The bill will need to advance through the full Senate, be reconciled with other Senate work on digital asset regulation and secure agreement with the House of Representatives before reaching the President’s desk.
Why does it matter?
The vote moves the United States closer to a federal framework for digital asset markets, but the debate shows that key questions remain unresolved. Rules on stablecoin rewards, DeFi, developers and enforcement powers will shape how crypto firms operate in the US. However, the political split could affect how quickly Congress can deliver a stable regulatory regime.
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