Senate Banking Committee Approves Clarity Act for Full Senate Vote

The Senate Banking Committee approved the Clarity Act last week, advancing the legislation toward a full Senate vote. No date has been set for the full Senate vote.

The Clarity Act establishes a regulatory framework that defines jurisdiction over digital assets between the Securities and Exchange Commission and the Commodities Futures Trading Commission. The legislation follows the GENIUS Act, which became law in July 2025. Industry participants have sought additional regulatory clarity since that time.

Holiday, co-founder at Space and Time, said the committee approval signals convergence on a framework for onchain markets. "The next phase is about turning that framework into infrastructure that institutions and protocol developers can easily adopt," Holiday said.

Committee Chairman Tim Scott said the bill brings digital assets into the sunlight with clear rules, stronger safeguards, and better tools to stop bad actors.

Pelkey, vice president of engineering at CoinFello, said legal ambiguity has held back DeFi builders for years. Fidelity has advocated for the legislation, which would provide clearer guidelines for digital asset custody, trading, and ETF allocation. Polymarket traders assign a 65 percent probability to the Clarity Act being signed into law this year.