Senate Advances Landmark Crypto Bill Despite Democrat Opposition

US Senate Majority Leader John Thune is moving to advance a landmark bill that would create a regulatory framework for cryptocurrencies. The Clarity Act, if passed, would provide legal clarity for the industry and potentially boost the adoption of cryptocurrencies.

The legislation would define when digital tokens are securities or commodities and which regulators oversee them. Crypto companies have been pushing for this regulation to compete with banks, which have fought to limit language that would allow crypto companies to offer rewards on customer stablecoin holdings.

Passage of the bill would be a major victory for US President Donald Trump and the crypto industry. Trump has prioritized crypto reform during his second administration and has been pushing hard for the bill, along with the White House. The crypto industry spent more than $119 million backing pro-crypto candidates in the 2024 election hoping to advance the Clarity Act.

Negotiations on restricting government officials' crypto ventures remain fluid, but Democrats want more restrictions on this aspect of the bill. Trump's family has profited from its own token, with him reporting over $1.4 billion in income from his family's crypto ventures last year.