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The CLARITY Act made it through the Senate Banking Committee markup hearing today relatively unscathed. While many amendments were proposed, the most onerous were turned away.
The final vote was 15 to 9, with all Republicans supporting the legislation and 2 Democrats joining the majority.
The Cortez Masto proposal to strip out the Blockchain Regulatory Certainty Act (BRCA) language did not even make it on the roster, as it was deemed to have committed a parliamentary foul.
While opposition came entirely from minority Democrats, including ranking member Senator Elizabeth Warren, many Democrats voiced support for the bill.
Senator Warren opened the hearing by declaring her concerns that the pro-industry crypto bill will put American consumers, investors, our national security, and our financial system at risk.
She warned that the legislation would “blow a hole in our securities laws” and “open season on defrauding Americans” would occur. But in the end, her proclamations of doom were set aside as the proponents of innovation and digital assets won the day.
Committee member Senator Thom Tillis stated:
“The Clarity Act passed by the Senate Banking Committee is a strong bipartisan compromise to provide the regulatory certainty needed to advance financial innovation. I was proud to work with my colleagues on both sides of the aisle for the past few months, and more work remains in the weeks ahead to make this legislation even better. Let’s get it done.”
Senator Tim Scott, the Committee Chairman, said the CLARITY Act “puts everyday Americans first with clear disclosures, safeguards against fraud, and rules that keep markets open and fair.”
Paul Grewal, Coinbase Chief Legal Officer, said Paul Grewal said that both Republicans and Democrats on the Banking Committee did impressive work.
“Thank you. CLARITY moves on.”
Senator Cynthia Lummis said the Clarity Act is critical to securing our financial future.
Now, the legislation will head to a Senate floor vote. While there is still time for some political haggling, the bill is in its final stages of becoming law. The vote should be held before the end of the month, with the schedule revealed in the coming days.