Senate Agriculture Committee Advances CLARITY Act in 12–11 Party-Line Vote

Highlights:

• The Senate Agriculture Committee advanced the CLARITY Act draft after a narrow party-line vote.
• The bill assigns crypto oversight between the SEC and CFTC while adding registration and customer protection rules.
• Senate Banking Committee delays and ethics disputes continue to complicate the path toward a full Senate vote.

The U.S. Senate Agriculture Committee advanced its crypto market structure proposal after a short markup session. Lawmakers debated the draft for slightly more than one hour. The committee approved the bill by a 12–11 vote along party lines. All amendments introduced during the session failed. Most votes followed strict partisan alignment.

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Democratic members prioritized ethics clauses and wider guardrails. They claimed that the new draft did not provide adequate protection. Other members expressed concerns about unintended regulatory consequences. They cautioned Congress against producing rules that might criminalize software development.

Senator Cory Booker emphasized that noncustodial instruments are still essential to the crypto ecosystem. Booker also indicated that the current CLARITY Act draft was unlike a bipartisan text that was debated late last year. He credited the change to political influence and White House pressure. The Republicans denied such an argument in the hearing.

Republican members said the committee needed to move forward despite disagreements. They framed the vote as part of a longer legislative process. Several members referenced months of negotiations before the markup. Lawmakers from both parties described the exchange as respectful. The committee proceeded to a final vote without adopting changes.

CLARITY Act Defines Jurisdictional Boundaries In Crypto Oversight

The CLARITY Act establishes a formal division of authority between federal regulators. The bill assigns primary oversight of digital commodity spot markets to the Commodity Futures Trading Commission. Lawmakers cited Bitcoin and Ethereum as examples of covered assets. The Securities and Exchange Commission would retain authority over digital assets sold as investment contracts.

Some advocates claimed that the framework provides clarity on regulatory obligations. The bill proposes crypto intermediary registration requirements. It also incorporates customer protection regulations relating to asset segregation. The purpose of disclosure standards is to enhance transparency in trading platforms. Lawmakers claimed that these measures address loopholes in existing oversight.

The CLARITY Act also includes protections for noncustodial developers and infrastructure providers. Lawmakers said these provisions support decentralized finance activity. Members stressed that software developers should not face liability for neutral tools. The text limits regulatory reach over core infrastructure. Supporters said the approach balances oversight with innovation.

Banking Panel Uncertainty Clouds Senate Path

The Senate Banking Committee still has to proceed with its own market structure proposal. The policymakers have not planned another markup hearing. An earlier markup was delayed earlier this year. That delay came after key industry leaders, such as Coinbase, opposed the draft. The leaders raised concerns about tokenized equities and the treatment of stablecoin rewards in the CLARITY Act.

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The overlapping of jurisdiction among committees has slowed the coordination. The two panels consider themselves to have control over the various sections of the crypto market. Negotiators have claimed that they have two Senate versions to reconcile before voters get to the floor.