The CLARITY Act cleared the Senate Banking Committee 15-9 on May 14, advancing to a full Senate floor vote.
Summary
- The Senate Banking Committee voted 15-9 on May 14 to advance the CLARITY Act, with Democrat Ruben Gallego of Arizona joining all 13 Republicans.
- Senator Elizabeth Warren called the bill “just not ready” and warned of weak anti-money laundering provisions and unresolved ethics language around officials who profit from crypto.
- The bill now needs 60 votes to clear a Senate floor vote, and the House must reconcile any differences before it reaches President Trump’s desk.
The Senate Banking Committee voted 15-9 today to advance the CLARITY Act, sending the Digital Asset Market Clarity Act to a full Senate floor vote. Democrat Ruben Gallego of Arizona crossed the aisle to join all 13 Republicans on the panel, giving the bill its first bipartisan committee passage in either chamber since it was introduced in May 2025.
Committee Chairman Tim Scott said the bill “keeps innovation in the US by updating outdated rules while giving law enforcement better tools to go after bad actors.” Senator Cynthia Lummis called it the “hardest piece of legislation” she has ever worked on.
The CLARITY Act passed the full House 294-134 in July 2025 and then stalled in the Senate Banking Committee for nearly ten months over disputes on stablecoin yield and jurisdictional lines between the SEC and CFTC.
What the vote means and what Elizabeth Warren said
Warren voted against the bill and led Democratic opposition during the hearing. “This bill is just not ready for prime time,” Warren said, citing concerns over anti-money laundering provisions she described as too weak, and unresolved ethics language around government officials profiting from crypto ventures.
She raised past instances including the sanctioning of Tornado Cash, which was used to launder funds connected to North Korean actors, as evidence of the regulatory gaps the bill leaves open.
Warren introduced two amendments during the markup session. One sought to keep risky assets out of retirement accounts. The other addressed sanctions authority. Both failed. Senator Mike Rounds separately proposed an amendment to create AI tool regulatory sandboxes.
The final bill that cleared committee includes Senator John Kennedy’s fiduciary duty provision, added after Kennedy became the last undecided Republican to commit to a yes vote on Wednesday.
The stablecoin yield compromise brokered by Senators Thom Tillis and Angela Alsobrooks was central to unlocking the vote. The deal bans passive yield on stablecoins but permits activity-based rewards tied to transactions, trading volume, or platform use.
Coinbase CEO Brian Armstrong reversed his January opposition on May 1 with a three-word X post: “Mark it up.”
What happens next and why the full Senate is harder
The CLARITY Act now moves to the full Senate, where it needs 60 votes to break a filibuster. The committee split was 15-9 with one Democrat. Reaching 60 on the floor requires at least seven more Democratic senators, most of whom have publicly aligned with Warren’s position on ethics language and AML provisions.
Senators Lummis and Bernie Moreno have warned that missing the Memorial Day recess window on May 21 would push the bill’s next viable legislative window past the 2026 midterm elections.
Polymarket odds of the CLARITY Act becoming law in 2026 moved sharply higher immediately after the committee vote was confirmed. The White House has set a July 4 target for a presidential signature.
