Clarity Act Moves Forward After 15-9 Committee Vote
Senate Banking Committee PASSES the Clarity Act in 15-9 vote. Sen. Cynthia Lummis called the proposal “the hardest piece of legislation” of her career. She said the bill fits new digital assets into an older regulatory system. The text splits oversight between the SEC and the CFTC and sets rules for exchanges, brokers, and custodians. The committee rejected several Democratic amendments during the markup session. Sen. Elizabeth Warren opposed the bill and called it “a bill written by the crypto industry.” She argued that the draft weakens securities law protections that date to 1929. Warren also warned that the bill allows banks to increase crypto exposure. She linked that risk to practices before the 2008 financial crisis. Republicans voted down her amendments in 11-13 votes. Ethics, Sanctions, and DeFi Debates Shape Vote Democrats raised concerns about illicit finance and stablecoins during the hearing. Sen. Jack Reed said Iranian actors use stablecoins to buy drone components. He sought authority for regulators to block foreign illicit stablecoin flows, but the amendment failed. Sen. Chris Van Hollen cited estimates that over $150 billion moved through illicit wallets last year. He proposed penalties for releasing DeFi protocols designed for money laundering. Republicans rejected his measure and said current criminal laws