CLARITY Act advances amid Senate ethics fight for crypto stablecoins
The CLARITY Act has cleared the U.S. Senate Banking Committee markup by a 15-9 vote, paving the way for a Senate floor vote. Coinbase urged continued momentum, but Paul Grewal said more work is still needed before the bill can pass.
Next, lawmakers are expected to merge the CLARITY Act with the Agriculture Committee’s package that covers the CFTC mandate, potentially creating the second U.S. regulatory framework for crypto firms after the GENIUS stablecoin law. Coinbase APAC also pointed to potential benefits for cross-border regulatory cooperation.
However, amendments remain a key risk. Sen. Reuben Gallego signaled he will oppose the CLARITY Act on the floor unless specific ethics and conflict-of-interest language is included. To pass, the bill needs 60 YES votes—implying at least 7 Democratic votes if all 53 Republicans support it. TD Cowen put passage odds at about 40% and warned Democrats may push for an amendment tied to conflict standards related to President Trump.
Market context: at the time of reporting, Bitcoin was down around 5% and trading below $78,000, suggesting some regulatory optimism may already be priced in, while geopolitics and macro headwinds persist. Traders will likely watch the CLARITY Act amendment timeline and the final wording on ethics/conflict provisions closely.
Bullish
The CLARITY Act’s progress through the Senate Banking Committee is a clear step toward regulatory clarity, which both earlier and current market narratives associate with improved risk appetite in crypto. The potential follow-through—merging with the CFTC-related half and building on the GENIUS stablecoin framework—could reduce uncertainty for exchanges and stablecoin issuers, supporting medium-term positioning.
That said, the latest details add a significant friction point: ethics and conflict-of-interest language could swing votes on the Senate floor. With Democrats potentially demanding amendments and passage still requiring 60 YES votes, the near-term path is less certain. BTC trading weakness below $78,000 suggests some optimism may already be priced in, so upside may be more “event-driven” than linear. Overall, the direction is supportive, but traders should expect volatility around amendment timing and final text.