Key Highlights
- Lawmakers made last-minute changes to Section 301, removing BRCA-related language.
- The Senate Banking Committee passed the CLARITY Act in a 15-9 vote, with some Democrats joining Republicans while saying the bill still needs more work.
- Key issues like ethics rules, stablecoin risks, and developer protections are still unresolved and will continue to be debated before the full Senate vote.
Following the Senate Banking Committee’s approval of the CLARITY Act, new details have emerged about last-minute negotiations that took place behind closed doors before lawmakers voted to advance the crypto market structure bill.
According to an X post by journalist Eleanor Terrett on Thursday, Republicans and Democrats on the committee spent the morning negotiating several amendments in an effort to secure bipartisan backing for the legislation ahead of the vote.
Section 301 and developer protections
One of the major issues during the talks focused on Section 301 of the legislation and language connected to the Blockchain Regulatory Certainty Act (BRCA). According to Terrett’s post, multiple sources said a compromise was reached that removed BRCA-related wording from an amendment introduced by Senator Cynthia Lummis.
The decision upset some DeFi supporters, who argued that the removed language could reduce protections for blockchain developers and software builders. Many in the crypto industry have argued that developers who create open-source software should not be treated the same way as financial companies that directly handle customer funds.
The debate over developer protections has become one of the most talked-about parts of the CLARITY Act as lawmakers continue trying to decide how crypto companies, decentralized platforms, and software creators should be regulated in the United States.
Although Senator Mark Warner spoke positively about some of the negotiated changes during the hearing, he ultimately voted against advancing the bill.
Senator Bernie Moreno said discussions around Section 301 are still not finished and may continue over the next few weeks as lawmakers work on combining different versions of the legislation before a full Senate vote.
“There’s still work to be done on Section 301,” Moreno said during the hearing.
CLARITY ACT advances in 15-9 vote
The Senate Banking Committee approved the CLARITY Act in a 15-9 vote, marking a significant step forward for crypto market structure legislation in the United States.
All 13 Republicans on the committee voted in favor of the bill. Democratic Senators Ruben Gallego and Angela Alsobrooks also voted yes, helping the legislation gain bipartisan support.
However, both senators made it clear that their votes do not mean they fully support the final version of the bill yet.
Alsobrooks said she spent months negotiating consumer protection measures and addressing concerns tied to stablecoins and the banking system.
“In recognition of that good faith, I have voted yes to advance the bill today,” she said.
Gallego said lawmakers still need to settle ethics provisions and coordinate with ongoing work in the Senate Agriculture Committee before the legislation reaches the Senate floor.
Another major amendment came from Senator Chris Van Hollen, who proposed stopping senior government officials, including the president and vice president, from holding certain crypto business interests. The amendment failed in an 11-13 vote after Republicans argued that parts of it went beyond the committee’s authority.
Senator Catherine Cortez Masto also attempted to revive an amendment related to banking concerns over stablecoins, but the proposal was ruled out of order before a vote could take place.
The CLARITY Act will now proceed to the Senate floor, where lawmakers are expected to continue negotiating unresolved issues.
Also Read: Banks Back CLARITY Act—But Say Stablecoin Loopholes Still Remain
