U.S. Senate crypto bill faces crucial procedural vote

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U.S. Senate crypto bill vote

Highlights

The Senate will hold a procedural vote Tuesday on the Clarity Act, which requires 60 votes and at least seven Democrats for approval.
Republicans released revised bill text Sunday addressing ethics concerns and state attorney general enforcement, aiming to secure bipartisan support.
Bank lobbying persists as the bill's latest draft gives Treasury authority to curb stablecoin issuer rewards if significant community bank deposit flight occurs.

Vote math and last-minute revisions

As first reported by CNBC, the Senate is set to hold a key procedural vote Tuesday on the Clarity Act after months of delays over support for the legislation. The bill, which would create a new regulatory structure for cryptocurrencies and other digital assets, cleared the Senate Banking Committee in May but has since stalled as leaders work to secure the 60 votes needed for approval.

With full attendance, at least seven Democrats would need to back the measure for it to move past a filibuster. Sen. Cynthia Lummis, one of the bill's leading supporters, says updated text released Thursday reflects a bipartisan process and is intended to win additional backing.

Republican leaders released another update late Sunday that they describe as their final offer to address Democratic concerns. Supporters say the revised language includes major elements of a crypto ethics agreement negotiated by Sens. Thom Tillis and Ruben Gallego, including a provision allowing state attorneys general to enforce ethics requirements on federal officials.

Ethics dispute and banking concerns shape outlook

Democratic resistance remains centered on ethics language tied to President Donald Trump and his family's crypto interests. Sen. Chris Van Hollen says the bill still contains major flaws and argues it should not move forward without stronger protections.

Banks are also pressing for changes, warning that stablecoin provisions could pull deposits away from traditional institutions if issuers are allowed to offer interest-like rewards. The latest version of the bill adds a compromise directing the Treasury secretary to restrict such rewards if deposit flight from community banks occurs on a substantial scale.

The outcome remains uncertain as lobbying by both banks and the cryptocurrency industry intensifies ahead of the vote. A Democratic aide familiar with the negotiations says enough Democrats may ultimately support the preliminary motion to keep the bill alive.

In our earlier article on UK regulators’ plans for tokenised gold, we covered the FCA’s work with the Treasury and the Bank of England on a bespoke regime to reduce uncertainty around how tokenised bullion should be treated under existing fund rules. We noted that officials were considering targeted exemptions to support market development and improve collateral and post-trade efficiency, including potential recognition of tokenised assets within key UK market infrastructure.

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