The U.S. Senate has started the process of moving forward with the CLARITY Act, setting the stage for an initial vote after lawmakers return from their August break.
Senate Majority Leader John Thune filed a motion late Friday to begin considering the crypto market structure bill. The move came too late for a vote before the Senate recess, but it places the legislation near the top of the agenda when lawmakers return on September 14.
The first vote will only decide whether the Senate should move ahead with discussions on the bill. It will not be a final approval. Senators will still need to debate the legislation, review possible changes, and vote again on the final version.
However, major disagreements remain between lawmakers. Key issues include ethics rules for government officials involved with crypto, enforcement powers, protections against illegal activity, and rules around stablecoin rewards.
Some Democrats are pushing for stronger consumer protections and stricter conflict-of-interest rules. Senator Elizabeth Warren has raised concerns about the current version of the bill, pointing to issues involving financial stability and government oversight.
Stablecoin rewards are another major point of debate. Banking groups want tighter limits on rewards linked to holding stablecoins, while crypto companies argue that strict restrictions could slow innovation and competition.
The CLARITY Act aims to create clearer rules for the crypto industry by defining whether digital assets should be regulated by the Securities and Exchange Commission (SEC) or the Commodity Futures Trading Commission (CFTC).
The House of Representatives passed an earlier version of the bill, and the Senate Banking Committee later approved its version. However, moving the bill through the full Senate will require wider support.
Senate leaders need 60 votes to overcome the chamber’s procedural hurdle, meaning lawmakers will likely need support from several Democrats.
If the bill moves forward, it could provide a clearer legal framework for U.S. crypto companies. Without it, the industry will continue operating under existing SEC and CFTC rules, court decisions, and state regulations.
Following the Senate filing, crypto markets remained mostly stable. Bitcoin traded near $65,000, while crypto-related companies such as Coinbase and Circle ended higher during Friday’s session.
The next major step will come in September, when senators return and decide whether they can resolve the remaining disagreements and build enough support for the bill to advance.
