The Senate Banking Committee votes Thursday on the CLARITY Act, comprehensive crypto legislation that would give 50 million U.S. crypto holders clear regulatory rules after years of uncertainty under the SEC and CFTC.

What The Bill Does

The CLARITY Act establishes clear rules separating which digital assets are securities and which are commodities, ending the jurisdictional confusion between the SEC and CFTC that has plagued the industry.

The bill requires digital asset exchanges, brokers, and dealers to comply with Bank Secrecy Act regulations, including anti-money laundering programs, suspicious activity reporting, and sanctions compliance.

The legislation protects software developers who publish code without controlling customer funds and preserves Americans' ability to self-custody their digital assets.

It also requires registration of Bitcoin ATMs with customer warnings, receipts, holding periods, and withdrawal limits.

Democrats Want Trump Conflict-Of-Interest Provision

Democratic Senator Chris Van Hollen (D-MD) wants to ban the president and senior government officials from owning, promoting, or affiliating with digital assets businesses.

Meanwhile, Senator Kirsten Gillibrand (D-NY) said the CLARITY Act will not pass the Senate without a conflict-of-interest provision.

Industry Backs The Bill

White House crypto director David Sacks called Thursday's markup "a monumental step in making the U.S. the Crypto Capital of the World."

Senate Vote Needs 60 To Clear

The Banking Committee will vote to advance the bill Thursday. Once approved, the bill merges with parallel legislation that already cleared the Senate Agriculture Committee.

The bill needs 60 votes to clear the Senate, requiring Democratic support, before heading to the House for another vote.

Senator Bill Hagerty (R-TN) introduced an amendment to ban central bank digital currencies issued by the Federal Reserve. Senator Jack Reed (D-RI) wants to restrict stablecoin yields further and scrap protections for software developers.