Senate Banking Committee chairman Tim Scott said the CLARITY Act would bring long-awaited legal certainty to the U.S. digital asset market, arguing that the legislation would end years of regulatory ambiguity that pushed innovation overseas.
Opening the Senate Banking Committee’s markup of the bill on Thursday, Scott described the legislation as a turning point for both the crypto industry and U.S. financial policy. “For years, the digital frontier was trapped in a regulatory gray zone,” Scott said. Developers, entrepreneurs, and investors, he added, faced uncertainty and enforcement actions instead of “clear rules of the road.”
Three goals: Consumer protection, innovation, and security
Scott said the legislation is built around three core objectives: protecting consumers, keeping innovation in the United States, and safeguarding national security. On consumer protection, he said the bill would establish disclosure requirements, anti-fraud safeguards, and legal standards intended to ensure that digital asset markets are “open, fair, and efficient.”
The bill is also designed to provide businesses with more predictable regulatory treatment, which Scott said is necessary to prevent companies from relocating to more crypto-friendly jurisdictions.
“This bill says that the future of finance should be built in America, under American laws, and with American values,” he said.
Bringing digital assets into regulated framework
Scott said the CLARITY Act would move crypto markets “out of the shadows” and into a more transparent regulatory system. He argued that the absence of a clear framework has left both investors and law enforcement at a disadvantage, creating confusion over how digital assets should be treated under federal law.
By establishing clearer oversight, the bill aims to reduce uncertainty for market participants while giving regulators more defined authority.
Scott also emphasized the bill’s national security provisions. He said the legislation would strengthen anti-money laundering and sanctions compliance requirements, making it harder for criminals, terrorists, and hostile governments to misuse digital assets.
“These tools make it harder to hide and easier to enforce the law,” Scott said.
Months of bipartisan negotiations
Scott credited lawmakers from both parties for advancing the legislation after months of negotiations. He said Republicans did not secure every provision they sought, but described the result as a bipartisan compromise that would benefit the public.
“Those are not partisan goals,” Scott said, referring to the bill’s central objectives. “They are American priorities.”
Industry and consumer groups rally behind the bill
Support for the CLARITY Act has expanded in the days leading up to the committee vote. Brian Armstrong previously said the bill is “closer than ever,” while AARP endorsed provisions requiring crypto ATM operators to register as money transmitters, citing growing fraud targeting older Americans.
Together, those endorsements highlight the broad coalition of industry and consumer groups backing the legislation as it moves through Congress.
Also Read: CLARITY Act Talks Collapse: Sen. Lummis Says 99% is Settled Before Senate Markup
