US Senate Advances Clarity Act, A Landmark Crypto Regulation Bill
The US Senate has advanced a landmark crypto bill, known as the Clarity Act, which would create a regulatory framework for cryptocurrencies. The move is seen as a major victory for US President Donald Trump and the crypto industry.
US Senate Majority Leader John Thune moved to set up a key procedural vote on the Clarity Act when the Senate returns from its August recess in mid-September. This could potentially pave the way for a full floor vote on the bill, which needs the support of at least eight Democrats and all voting Republicans to pass.
The legislation 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.
Passage of the bill would be a blow for banks, which have fought to limit language that would allow crypto companies to effectively compete with bank deposits by offering rewards on customer stablecoin holdings. Trump has prioritized crypto reform during his second administration, and the White House has been pushing hard for the bill.