Key Insights
- The Senate Agriculture Committee voted 12-11 to approve the CLARITY Act, with no Democrats voting in favor.
- Lawmakers rejected amendments on ethics provisions. These amendments would have stopped officials from profiting off crypto. The rejection likely pushed Democrats to back out.
- Senate committee members rejected all amendments. No changes were approved. Everyone now waits for the Banking Committee.
The Senate Agriculture Committee approved the Crypto Market Structure bill. CLARITY Act markup gained official support. The committee held Thursday’s markup session.
It deliberated on its part of the proposed legislation. Members had postponed the sitting earlier. Inclement weather caused the delay.
According to crypto journalist Eleanor Terret, the bill passed the committee stage with members voting along party lines. She live-posted the proceedings on X. This meant that no Democrat voted in favor of the legislation, with a 12-11 vote.
Ethics Issue Remains a Core Issue for Senate Democrats
Democrat senators chose not to vote for the bill. They failed to secure concessions on their amendments. That failure likely drove their decision. Bipartisan discussions have continued for months. Lawmakers still disagree on some provisions. The CLARITY Markup Bill remains unresolved.
Ranking Democrat member in the committee, Senator Amy Klobuchar, explained the reason why Democrats are not supporting the bill. The two major points were the ethics issue and the independence of the Commodities Futures Trading Commission (CFTC).
Democrat senators had proposed an amendment that would ban public officials and their families from benefiting from crypto. They also wanted a provision that would make the bill’s effectiveness contingent on filing for vacant commissioner positions at the CFTC.
The ethics rules appeared to be the biggest issue for Democrats. Senator Cory Booker led Democrat negotiations on the bill. He claimed the current version does not reflect party consensus. His statement highlights divisions over the legislation.
He blamed the White House in particular for making negotiations harder. At the same time, he accused President Donald Trump of profiting from crypto. Speaking on the matter, Senator Elissa Slotkin of Michigan said:
However, the proposed amendment to ban federal elected officials and their families from profiting off crypto while in office was rejected. The proposal from Senator Michael Bennet of Colorado also required public officials to put such assets in a blind trust.
Banking Committee Holds Key After CLARITY Act Markup
Meanwhile, the two other amendments brought to the floor were also rejected. Senator Dick Durbin, representing Illinois, had proposed preventing bailouts for crypto intermediaries in the event of bankruptcy.
The senator who described himself as a crypto skeptic could not secure a majority to pass his amendment. Interestingly, another Durbin amendment proposing measures to protect victims of crypto ATMs was also rejected.
The committee chair, Senator John Bozzman, explained that similar language is already in the Senate Banking Committee portion of the bill.
However, two other amendments from Senator Tommy Tuberville of Alabama and Senator Jerry Moran of Kansas were withdrawn. Tuberville proposed amendments to block foreign influence from accessing US digital markets and to provide more clarity on dealer regulatory requirements.
With the Agriculture Committee completing its markup, the bigger issue is with the Banking Committee. Its version of the Bill includes controversial provisions. It covers stablecoin yield and other issues. The CLARITY Act markup highlights these fundamental points.
A final Senate floor vote is required. The bill must first pass the Banking Committee. Only then can a combined version move forward.
The post Senate Panel Passes CLARITY Act Markup Despite Democrat Opposition appeared first on The Market Periodical.