US Senate advances landmark crypto bill before August recess
Washington: The US Senate has taken a procedural step toward passing a comprehensive regulatory framework for cryptocurrencies, a move that, if successful, would be a significant victory for President Donald Trump and the digital asset industry.
Senate Majority Leader John Thune, a Republican, filed a motion on Saturday to schedule a key procedural vote on the Clarity Act when the Senate returns from its August recess in mid-September. This step could pave the way for a full floor vote on the legislation, according to the Senate Press Gallery website.
The move signals that Republican leaders believe they may be able to secure the 60 votes needed for passage, despite opposition from many Democrats. Currently, the bill would require support from at least eight Democrats along with every Republican senator.
The Clarity Act seeks to establish the first comprehensive federal rulebook for cryptocurrencies. It would define when digital tokens are classified as securities or commodities and identify which regulators oversee them. Crypto companies argue that such clarity is essential for the industry's growth and could accelerate mainstream adoption of digital currencies.
If passed, the act would mark President Trump's second major policy win in the crypto space. Earlier, he signed into law a bill supporting dollar-backed tokens known as stablecoins. However, Democrats have raised concerns about conflicts of interest, noting that Trump's family has profited from its own crypto ventures.
The crypto industry has invested heavily in advancing this legislation. Industry groups spent over $119 million supporting pro-crypto candidates in the 2024 elections to push for the Clarity Act and the stablecoin law.
The bill faces opposition from banks, which have lobbied to restrict language that would allow crypto companies to compete for bank deposits by offering rewards on customers' stablecoin holdings.
Trump has prioritised crypto reform during his second administration, and the White House has been actively lobbying for the bill, according to Reuters. Trump's financial disclosures from June reported over $1.4 billion in income from his family's crypto ventures last year, intensifying Democratic concerns about potential conflicts.
Democrats are pressing for stricter restrictions on government officials' involvement in crypto ventures. Negotiations on this aspect of the bill remain ongoing and unresolved.
The procedural vote in September will be a critical test of whether bipartisan support can be secured for the legislation.
