Senate Advances Crypto Bill as Trump Eyes Second Win
US Senate Majority Leader John Thune has moved to advance a major bill that would create a regulatory framework for cryptocurrencies.
The Clarity Act, if passed, would mark a huge victory for US President Donald Trump and the crypto industry. It would give the crypto industry its first comprehensive federal rulebook, defining when digital tokens are securities or commodities and which regulators oversee them.
Crypto companies say the act is necessary to provide legal clarity for the industry and could potentially boost the adoption of cryptocurrencies. However, the passage of the bill would be a blow for banks, which have fought to limit language that would allow crypto companies to effectively compete for bank deposits by offering rewards on customer stablecoin holdings.
The legislation needs the support of at least eight Democrats and all of the Senate's voting Republicans for it to pass. Trump has prioritized crypto reform during his second administration, and the White House has been pushing hard for the bill. However, negotiations on aspects of the bill remain fluid, particularly regarding restrictions on government officials' crypto ventures.