A Landmark Crypto Bill Faces Huge Test in Senate

The crypto industry faces a giant test in the Senate Tuesday afternoon, and nobody seems to have any idea how things will turn out. The test is a procedural vote on landmark legislation known as the Clarity Act, which would set new rules for digital-asset markets. Republicans need help from Democrats to get it passed, and the legislation's fate is currently "as clear as dirt" after furious negotiating over the last few days, reports Punchbowl News. With just hours to go, Democrats are preparing a counteroffer after the GOP added tighter ethics limits on President Trump—provisions Democrats quickly trashed as too weak.

Sen. Elizabeth Warren has been pressing colleagues on what she calls serious gaps, and fellow Democrat Raphael Warnock warned against advancing a bill that leaves "opportunities for corruption." The bill also faces skepticism on the right: Susan Collins, for example, is worried the legislation would cause community banks to lose deposits. Several Republicans say they'll back a procedural vote but not final passage unless changes are made. NPR provides a big-picture look at why the legislation is seen as so important, noting that it "effectively establishes a clear legislative framework for the crypto sector for the first time in US history." The crypto industry has been pushing for it for years, seeing it as a way to inject more legitimacy into their markets.