Bond.az -- The Republican-led Senate Banking Committee met Thursday to consider legislation that would create regulations for cryptocurrencies, marking a significant step for the bill that has faced delays due to disputes between crypto companies and banks.
The Clarity Act aims to clarify regulators' jurisdiction over the cryptocurrency sector. Thursday's mark-up session, where senators debate, amend and vote on whether to advance the bill, will show if it can secure the at least seven Democratic votes needed to pass the full Senate.
Several Democrats oppose the bill, contending its anti-money laundering provisions are insufficient and that it should prohibit political officials from profiting from crypto ventures. Elizabeth Warren, the Committee's top Democrat, stated it will put national security and the entire financial system at risk.
The crypto industry has advocated strongly for the legislation, describing it as essential for the future of U.S. digital assets and necessary to address core problems for crypto companies. The bill would define when crypto tokens are securities, commodities or otherwise, providing what the industry describes as needed legal clarity that should help boost digital asset adoption.
"This legislation does not take sides between traditional finance and new technology, or Republicans and Democrats," said Republican Sen. Tim Scott, the chairman of the banking committee, at the outset of the hearing.
The industry spent more than $119 million backing pro-crypto candidates in 2024 seeking to advance the Clarity Act and a separate bill paving the way for wider adoption of dollar-backed tokens known as stablecoins, which became law last year.