US Senate Advances Crypto Bill to Provide Regulatory Framework

The US Senate has moved to advance a landmark crypto bill that would create a regulatory framework for digital currencies, according to Senate Majority Leader John Thune. The Clarity Act aims to provide legal clarity for the industry by defining when digital tokens are securities or commodities and which regulators oversee them.

Crypto companies have been pushing for this legislation, arguing it could boost the adoption of cryptocurrencies. However, the bill still faces opposition from many Democrats, who claim it would benefit Trump's family, who has profited from their own crypto ventures.

The passage of the Clarity Act would mark a significant victory for President Donald Trump and the crypto industry. It would also hand Trump his second major crypto policy win after he signed a bill supporting dollar-backed tokens known as stablecoins into law last year.

The bill's progress has been closely watched, with the crypto industry spending over $119 million backing pro-crypto candidates in the 2024 election. Banks have also fought against language that would allow crypto companies to effectively compete for bank deposits by offering rewards on customer stablecoin holdings.