WASHINGTON—The Senate Banking Committee on Thursday advanced the long-debated CLARITY Act, approving the sweeping digital-assets market structure bill on a 15-9 vote after a contentious markup process that included Democrats unsuccessfully pushing for votes on tougher stablecoin yield restrictions, according to POLITICO.
The bipartisan vote sends the legislation to the Senate floor and marks a significant step forward for a bill designed to establish a formal regulatory framework for cryptocurrencies, digital asset exchanges and stablecoins. As previously reported by CUToday.info, the measure had stalled for months largely over disputes tied to stablecoin yield provisions and whether crypto firms could offer rewards that function similarly to interest-bearing bank deposits.
Banking Chair Tim Scott secured support from Democratic Sens. Ruben Gallego and Angela Alsobrooks, who joined Republicans in backing the bill while emphasizing negotiations remain ongoing ahead of a potential floor vote. POLITICO reported Gallego said his support “does not guarantee a vote on the floor,” while Alsobrooks called her vote “a vote to keep working in good faith.”
The markup, however, was marked by procedural disputes after Scott ruled several proposed amendments out of order due to drafting issues while allowing others to move forward. According to POLITICO, ranking member Elizabeth Warren objected after Democrats were denied votes on amendments that would have strengthened stablecoin yield restrictions and addressed concerns raised by law enforcement groups regarding protections for software developers.
As CUToday.info recently reported, lawmakers had been attempting to resolve one of the bill’s biggest sticking points through compromise language from Sens. Thom Tillis and Alsobrooks that would prohibit rewards deemed “economically or functionally equivalent” to interest paid on bank deposits. Banking and financial institution trade groups have argued the language still leaves loopholes that could encourage deposit migration away from traditional financial institutions.
The Defense Credit Union Council has voiced support for the overall direction of the legislation while pushing lawmakers to ensure credit unions receive parity with banks in any final digital-assets framework. DCUC Chief Advocacy Officer Jason Stverak recently stated the trade group remains focused on ensuring credit unions are not treated as “an afterthought” as Congress develops future stablecoin and payments regulations.
America's Credit Unions has taken a similar position. As previously reported by CUToday.info, ACU Senior Vice President of Advocacy Greg Mesack said earlier versions of the legislation did not include credit unions at all, but negotiations with lawmakers helped move the bill to a point where credit unions are “on equal footing with banks and able to offer the same products and services under this legislation to their members.”