Senate Panel Advances CLARITY Act, Splits SEC-CFTC Roles

The Senate Banking Committee advanced H.R. 3633, known as the CLARITY Act, on May 14, 2026, by a 15-9 bipartisan vote. The bill assigns primary oversight of digital commodities such as bitcoin to the Commodity Futures Trading Commission and keeps the Securities and Exchange Commission responsible for crypto assets treated as securities.

Republicans on the committee were joined by Democrats Ruben Gallego and Angela Alsobrooks. The vote moves the bill out of committee but does not guarantee passage by the full Senate; Senate leaders will need to secure additional support to overcome procedural obstacles.

Under the bill, the CFTC would regulate tokens classified as digital commodities once they meet specified “mature blockchain” criteria. The SEC would retain authority over tokens functioning as investment contracts or other securities. Lawmakers have debated how to define the mature-blockchain test and how to apply it across token types.

H.R. 3633 also sets requirements for cryptocurrency exchanges and brokers, creates rules for decentralized finance platforms, and imposes standards for stablecoin issuers. The measure includes consumer-protection provisions aimed at reducing the risk of broad industry failures, as well as measures to tighten controls against illicit finance. One provision limits how stablecoin platforms can offer rewards compared with interest-style payments to address potential risks to the banking system.

The bill originated in the House and passed there in 2025. Passage by the Senate Banking Committee is a step forward, but the legislation will likely need 60 votes on the Senate floor to overcome a filibuster. Republicans hold 53 Senate seats, meaning additional Democratic support will be required to reach that threshold.

Companies including Coinbase and Ripple have expressed support for the framework, saying clearer rules would reduce uncertainty over which regulator enforces rules for particular tokens and services. Market reaction to the committee vote was positive: bitcoin rose about 2.8% on the day and traded near $82,000 as investors factored in the possibility of more defined U.S. regulation.

Committee members continued to negotiate technical details, including how regulators would coordinate to avoid enforcement gaps and overlapping requirements. Lawmakers face a compressed calendar ahead of a summer recess and the midterm election cycle, which could limit time for floor debate and final votes. If the Senate approves the bill, it would then go to the president for signature to become law.