The US Senate Banking Committee brought the Clarity Act bill, which covers market structure regulation regarding cryptocurrencies, to the Senate agenda with a vote of 15 to 9. The passage of the bill from the committee created a positive expectation in the crypto industry in the short term.
Two Democrats Join All Republicans
In the voting, two Democratic senators, Ruben Gallego and Angela Alsobrooks, voted in favor of the bill, while all Republicans on the committee also supported the bill. In addition, some Democrats stated that they were inclined to vote yes in the Senate plenary session with the changes to be made. At least seven Democrats also need to approve the bill for it to advance in the Senate; Because if 43 Republicans say yes, the number will be sufficient.
It was predicted that the Clarity Act would pass the committee even before the vote. However, the support of two Democratic members and the conditional positive signal of several others increased the likelihood of the bill passing in future votes.
Expectations in the Industry and the Need for Compromise
The crypto industry has long hoped for bipartisan support. Even those who directly voted against the bill in the last committee discussion hinted that they could be persuaded in the final vote in the Senate. The bill still has some problems. Especially the articles regarding ethical regulations are still not clear. Despite this, many senators emphasized that these were not severe enough to prevent the passage of the law.
Some names, such as Senator Mark Warner, indicated that they would support the bill if additions were made. Thanks to planned amendments and compromises, the law’s chances have increased compared to last week. However, there are some items that will not be welcomed by the industry.
Process and Political Dynamics in the Draft
Members of the Banking and Agriculture Committee prepared different drafts; These two versions will need to be combined in the next phase of the bill. The crypto industry’s spending and size in the 2024 elections had an impact on politics. This year, candidates backed by super PACs (political action committees) have shown interest in crypto, and lawmakers are aware that the industry can spend hundreds of millions of dollars on elections.
After the committee meeting, which lasted approximately 2.5 hours and was heated at times, Cody Carbone, president of the crypto trade group Digital Chamber, stated in his statement after the meeting that similar negotiations were continuing in the Agriculture Committee.
Carbone stated that he predicted that the next three weeks would be extremely busy in both committees and that some critical compromises would come to the agenda in the Agriculture Committee.
Ethical clauses that may be added to the bill aim to prevent high-level government officials from profiting from the crypto industry. Senators have signaled that they may approach an agreement on this issue soon, but the details have not been clarified yet. The final agreement will also need approval from the White House for it to pass.
If the bill passes the Senate, the process will move to the House of Representatives. Support for a similar bill in the Parliament last year strengthens the impression that the new bill can pass without any problems. Some lawmakers may want to add a ban on digital central bank money to the process; but there is no decision on this issue yet.
In the session where the political influence of the industry was emphasized, it was stated that organizations such as Fairshake and Stand With Crypto carefully followed the MPs’ views on the law. These structures create pressure ahead of elections by scoring how politicians vote on crypto regulations.
