CLARITY Act clears Senate Banking Committee, but Alsobrooks demands tougher crypto ethics

The US Senate Banking Committee advanced the CLARITY Act in a 15-9 vote on May 14–15, 2026. Senator Angela Alsobrooks (D-MD) voted yes, but said her support is not a “blank check.” Traders should note that only Alsobrooks and one other Democrat (Ruben Gallego, D-AZ) crossed party lines; the remaining nine no-voters were Democrats, largely reflecting concerns about ethics and enforcement. Before the CLARITY Act reaches the full Senate, Alsobrooks is pushing for additional talks on two fronts: stronger illicit-finance safeguards and tighter ethics rules that would limit personal digital-asset investment opportunities for government officials. A key step that helped move the bill was a bipartisan stablecoin rewards compromise with Senator Thom Tillis (R-NC). Crypto platforms may offer rewards tied to legitimate stablecoin-related activity, but they cannot provide yield products comparable to traditional bank deposits. Regulators would be explicitly delineated under the CLARITY Act, aiming to clarify SEC versus CFTC roles across the digital-asset market structure. Market reaction was constructive on the day: Bitcoin briefly surged to around $81,500, suggesting traders priced in possible regulatory clarity. However, the unresolved ethics/illicit-finance negotiations imply a slower, more contentious path to final passage—likely capping near-term upside and increasing policy headline risk.