Senate Banking Committee passes Clarity Act 15‑9, ethics hurdle looms

The Senate Banking Committee voted 15‑9 to advance the Digital Asset Market Clarity Act on May 14, marking the first bipartisan win for the crypto‑industry’s flagship regulatory bill and sending Bitcoin, Ethereum and XRP down 1‑2% in early trade [1].

Senate markup and the bill’s next steps

The vote came after Chairman Tim Scott admitted last‑minute amendments that won two Democratic votes, shifting the tally from a partisan split to a bipartisan majority [1]. The amendments add investor protections, clarify permissible bank activities and set a definition for “truly decentralized” DeFi projects [1]. With the bill now moving to merge with a companion measure cleared by the Senate Agriculture Committee, it faces a full‑Senate vote, then a House vote, before it can become law [1].

Ethics provision and looming deadline

A separate closed‑door meeting on June 10 2026 saw Republicans and the White House withdraw a key ethics provision that would let state attorneys general sue the DOJ over alleged conflicts tied to former President Trump’s crypto interests [2]. Law‑enforcement groups were also consulted on Section 604, which governs on‑chain enforcement authority [2]. With only 31 Senate session days left before the August recess and a 60‑vote threshold still required, unresolved ethics and law‑enforcement objections could stall the bill entirely [2].

Market reaction

The bipartisan vote lifted sentiment briefly, but the unresolved ethics snag prompted a modest sell‑off across major tokens, with Bitcoin slipping 1.9%, Ethereum 1.1% and XRP 2.4% in the 24‑hour window following the announcement [1]. The moves keep all three assets below their recent two‑week highs, suggesting traders are awaiting clarity on the bill’s final shape before committing further capital.

What to watch

• Senate floor debate on the Clarity Act before the August recess (target: 60‑vote threshold).
• Potential reinstatement or revision of the ethics provision in upcoming negotiations.
• Price levels: Bitcoin $60,000, Ethereum $1,600 and XRP $1.00 as technical support zones.

The Senate Banking Committee’s approval shows bipartisan momentum for a unified crypto regulatory framework, yet the ethics impasse highlights how political friction could delay—or even derail—the bill’s path to law, leaving market participants in a holding pattern.