Catenaa, Thursday, May 15, 2026- The US Senate Banking Committee advanced a landmark cryptocurrency market structure bill Thursday after a contentious bipartisan vote that exposed growing divisions over ethics rules, stablecoin regulation and federal oversight of digital assets.
Lawmakers voted 15-9 to move forward with the proposed CLARITY Act, one of the most closely watched crypto bills in Washington. The legislation now heads toward a full Senate vote in the coming weeks after gaining support from two Democratic senators seen as pivotal negotiators during last-minute discussions.
Ruben Gallego and Angela Alsobrooks voted in favor of advancing the bill while warning they could still oppose final passage unless lawmakers strengthen ethics provisions tied to digital asset ownership by senior government officials and their families.
The CLARITY Act is designed to establish a clearer federal framework for cryptocurrency markets, decentralized finance platforms and digital asset trading in the United States.
The legislation would help define oversight responsibilities between federal regulators, particularly the Securities and Exchange Commission and the Commodity Futures Trading Commission, while also addressing rules around stablecoins, tokenization and decentralized finance infrastructure.
The bill advanced amid mounting pressure from the crypto industry, which has spent years lobbying Congress for clearer regulations after repeated legal disputes between regulators and digital asset firms.
Ethics concerns emerged as one of the largest sticking points during negotiations because of President Donald Trump and his family’s involvement in crypto ventures.
Gallego warned during the committee session that he could vote against the bill during the final Senate stage if lawmakers fail to strengthen language restricting financial transactions involving digital assets by federal officials and their relatives.
Alsobrooks also stressed that her committee vote should not be viewed as guaranteed support for final passage.
The committee approval marks one of the strongest signals yet that Congress is moving closer toward comprehensive crypto legislation after years of stalled negotiations.
Industry leaders immediately described the vote as a major breakthrough for digital asset regulation in the United States.
Supporters argue the legislation could accelerate institutional investment, strengthen legal certainty for crypto firms and help establish the US as a global center for blockchain innovation.
The vote also highlights growing political momentum behind digital assets despite ongoing resistance from parts of the banking industry and several Democratic lawmakers.
However, several contentious issues remain unresolved before the bill reaches the Senate floor.
One major dispute involves stablecoin rewards programs. Traditional banking groups have argued that crypto firms offering rewards on stablecoin holdings could pull deposits away from banks and weaken local lending activity.
The crypto industry has countered that banks are attempting to suppress innovation to protect existing financial systems.
The legislation also continues to face debate over decentralized finance protections, particularly regarding whether noncustodial software developers should be exempt from money transmitter rules.
Sources familiar with negotiations said Senate negotiators made late concessions that may remove some protections previously sought by decentralized finance advocates.
Cody Carbone described the bipartisan vote as better than expected given the tense negotiations leading into the hearing.
Carbone said discussions around ethics provisions and decentralized finance protections intensified during the final 24 hours before the vote.
The DeFi Education Fund said the bill remains imperfect but called it an important step toward protecting software developers within federal law.
Ji Kim described the committee vote as a “decisive turning point” for digital asset policy in the United States.
Summer Mersinger called the vote a “defining moment” and said durable crypto policy would require bipartisan support.
Meanwhile, Brian Armstrong praised the committee markup as a historic moment for the crypto sector, pointing to improvements made since earlier negotiations collapsed in January.
Congress has struggled for years to pass comprehensive crypto legislation as regulators, banks and digital asset firms battled over oversight authority and market structure rules.
Earlier attempts to move major crypto bills stalled amid disagreements surrounding stablecoins, consumer protections and decentralized finance regulations.
The latest version of the CLARITY Act emerged after months of negotiations involving lawmakers, crypto companies, banking groups and industry lobbyists.
Large banking organizations, including the American Bankers Association, continued opposing parts of the legislation after Thursday’s vote, particularly sections tied to stablecoin rewards.
Banking groups warned the current proposal could encourage deposit flight from traditional banks into digital assets if stronger restrictions are not added before final passage.
Despite the remaining disputes, Thursday’s committee vote marked one of the clearest indications yet that crypto legislation is gaining traction inside Congress ahead of the 2026 election cycle.
