Senate Banking Panel Advances CLARITY Act After Last-Minute Bipartisan Accord

The Digital Asset Market Clarity Act (CLARITY Act) cleared the Senate Banking Committee last Thursday after eleventh-hour negotiations produced a bipartisan deal just ahead of the hearing. Crypto In America reported that lawmakers finalized the compromise during the committee markup, sending the bill forward on a 15–9 vote. Democratic Sens. Angela Alsobrooks and Ruben Gallego joined Republicans after protracted talks over ethics requirements and protections for developers. Negotiations had broken down Wednesday night, with disputes focused on ethics guardrails and proposed changes linked to the Blockchain Regulatory Certainty Act (BRCA), according to the report. Talks restarted Thursday morning at the Dirksen Senate Office Building. Sens. Mark Warner, Catherine Cortez Masto, Raphael Warnock, Alsobrooks and Gallego were said to have met privately before the markup. Committee Chairman Tim Scott opened the session as discussions continued, and staffers cited by Crypto In America said terms were still being finalized minutes after proceedings began. A set of amendments sponsored by Sen. Cynthia Lummis became central to the compromise. A bipartisan group, including Sens. Thom Tillis, Lummis, Alsobrooks and Gallego, negotiated revised language, modifying five Lummis amendments before the committee vote. Lawmakers also removed BRCA-related language from Section 301. Other changes addressed insider trading involving ancillary assets, preserved state consumer protection laws, and added provisions authorizing banks and credit unions to engage in digital asset activities. All revised amendments were brought back for votes and ultimately passed with bipartisan support. Even so, Gallego said his committee vote did not assure backing on the Senate floor, citing unresolved concerns over ethics rules for elected officials with crypto ties. Next, the legislation is expected to be combined with the Senate Agriculture Committee’s Digital Commodity Intermediaries Act before heading to the full Senate for debate.