US Senate panel approves crypto market structure legislation

WASHINGTON: A Republican-led Senate committee on Thursday advanced a major cryptocurrency regulation bill, marking a significant step forward for legislation aimed at creating a clear framework for the digital asset industry in the United States.

The Senate Banking Committee approved the Clarity Act with backing from all Republican members and support from Democratic senators including Ruben Gallego and Angela Alsobrooks.

The bill will now move to the full Senate, where lawmakers are expected to face intense lobbying and further negotiations over its final shape.

The proposed legislation seeks to clarify which regulators oversee cryptocurrencies and determine whether digital tokens should be classified as securities, commodities or other financial assets — an issue the crypto industry says has long created uncertainty.

Committee Chairman Tim Scott said the bill was designed to support innovation while ensuring regulatory clarity.

 “This legislation does not take sides between traditional finance and new technology, or Republicans and Democrats,” Scott said during the hearing.

Despite voting to advance the measure, Gallego and Alsobrooks indicated they may still seek changes before supporting the bill on the Senate floor.

Several Democrats raised concerns that the legislation does not go far enough on anti-money laundering safeguards and should prevent political officials from benefiting financially from crypto-related ventures.

The cryptocurrency sector has strongly backed the bill, arguing it is essential for the future growth of digital assets in the United States. Industry groups spent heavily supporting pro-crypto candidates during the 2024 elections in hopes of advancing legislation favorable to the sector.

Banks, however, have opposed parts of the proposal, particularly provisions related to stablecoins, warning they could create competition for traditional bank deposits by allowing crypto firms greater flexibility in offering rewards.

The administration of Donald Trump has also supported crypto reform efforts, with the White House reportedly pushing for the legislation.

Meanwhile, Elizabeth Warren criticized the measure, arguing it could weaken consumer protections and pose risks to the financial system.

 “Our job is to serve the American people,” Warren said. “Our job is not to advance a pro-industry crypto bill that will put American consumers, American investors and our national security and our financial system at risk.”