- On May 14, the Senate Banking Committee approved the CLARITY Act by a bipartisan 15-9 vote.
- After the delay of the Senate period and amendments, this approval is a great victory for the entire crypto community, because it will provide the most important information for crypto-based innovations.
- The approval triggered positive sentiment in the crypto market, and Bitcoin (BTC) rose close to $82,000 with a 3% rise in the past 24 hours.
The United States Senate Banking Committee is holding a hearing on May 14 on the Digital Asset Market Clarity Act, commonly known as the CLARITY Act. In this part of the show, the Senate approved the bill with a bipartisan vote of 15-9.
What is the CLARITY Act?
The CLARITY Act is expected to bring legal clarity and clearer federal regulations in the digital financial sector by dividing authorities between two agencies. While the Commodity Futures Trading Commission will look at many cryptocurrencies such as digital trading, including Bitcoin and Ethereum, the Securities and Exchange Commission (SEC) will focus on symbols that fall under the category of securities.
The bill also includes provisions for stablecoins, as well as protection for DeFi developers. Most importantly, this bill is expected to bring about new changes in the crypto market. This bill resolves the long-term uncertainty in the crypto market that has plagued the financial sector.
In 2025, the House approved an amendment to the bill with strong bipartisan support. However, in the Senate, the bill has been working in the Banking Committee for a year. Today’s information session is the committee’s first official vote. In this session, senators voted on the bill along with 100 different amendments. Senator Elizabeth Warren has proposed more than 100 amendments to the bill.
After the bill was approved in this part of the show in the committee that includes 13 Republicans and 11 Democrats, in the next step, it will go to the full vote of the Senate. After this session, lawmakers will need to address the differences between the Senate version and other versions, such as the Agriculture Committee. After this, the bill will reach the desk of US President Donald Trump for final approval and his signature. According to some reports, the bill is expected to pass in July.
The committee is led by Republicans led by Chairman Tim Scott, a Republican from South Carolina.
The currency is also receiving strong support from the crypto sector, after a major disagreement, which was not present in the initial phase.
Issues Between Banks and Crypto Firms Over Stablecoin Yields; Completely Resolved
One of the biggest inconsistencies was the stablecoin yield. There was a debate as to whether crypto companies could offer yields on stablecoins such as USDC or USDT.
The banking sector has raised questions that the crop could take away deposits from traditional banks and disrupt their operations. In response, the crypto sector said that the productivity is related to the activities of the users, and it is different from the interest of the bank.
Councilors Thom Tillis and Angela Alsobrooks have joined the debate. This inconsistency was included in the latest 309 page bill document which was established on May 12.
The document cited measures that include banning what appears to be bank interest on the stablecoin industry. However, it will allow productivity based on activities related to things such as sales or platform usage. With such distractions, senators are addressing concerns about banking and the crypto sector while promoting innovation at the same time.
Senator Tim Scott said in a statement post at X that,”Families, small businesses, investors, and creatives need clear rules of the road for digital content. The Senate version of the CLARITY Act provides certainty, protection, and accountability, while protecting Main Street, strengthening national security, and keeping America innovative.“
Even some banking groups, such as the American Bankers Association, are still opposing the bill. These banking groups have criticized the deal saying that they are not mature enough to manage the digital economy sector.
However, the White House Council of Economic Advisers has said that the impact of stablecoin yields on bank lending will be limited.
After the new changes in CLARITY bills, Coinbase CEO Brian Armstrong raised his support for the bill. At the January hearing, he raised objections to previous versions of the bill.
The field of writing in the crypto sector has sparked discussions in the crypto community. The CEO of Coinbase Brian Armstrong recently said that not everyone got everything they wanted, but it is important to accept the process of implementation.
Senator Cynthia Lummis has been mentioned the importance of the CLARITY Act, stating that “Without the Clarity Act, digital content companies will move to any country that has regulators willing to take action. Every day we stop is a day we give our competitors an opportunity we will never get back. The Clarity Act is essential to our financial future.“
Bitcoin Shot Up 3% Following Senate Approval
Although the crypto market has already risen due to positive sentiment in the past few days, this part of the CLARITY Act could cause interest if institutional investors start to accumulate news.
Over the past two days, on May 12 and May 13, Bitcoin ETFs have seen outflows of $233 million and $630 million, respectively. Father’s side. These ETF outflows have also pushed the price of Bitcoin (BTC) below $80,000.
However, the crypto market is already giving positive results after the commission decided to advance the CLARITY law. According to CoinMarketCap, Bitcoin it’s selling around $81,917.18 and 3.17% rise in the last 24 hours. The total market capitalization of the crypto market also increased by almost 2% and currently stands at $2.72 trillion. The rise of Bitcoin has also led to a correlation with other altcoins such as Ethereum, XRP, and others.
