A sweeping overhaul of U.S. cryptocurrency regulation is moving toward a pivotal Senate test in September, potentially giving the digital-asset industry a long-sought federal framework while intensifying a political fight over financial competition and President Donald Trump’s ties to crypto businesses.
Senate Majority Leader John Thune took procedural action Saturday to advance the Clarity Act, setting up a key vote after lawmakers return from their August recess, according to Reuters. The maneuver could ultimately clear the way for the legislation to reach a full Senate vote.
The measure would establish broad federal rules governing digital assets, including standards for determining when tokens fall under securities or commodities law and which agencies are responsible for overseeing them, Reuters reported. Crypto companies have argued that clearer federal rules would reduce legal uncertainty and encourage wider adoption of digital assets.
The Senate arithmetic remains difficult. According to Reuters, the bill would need 60 votes to advance, meaning Republicans would require support from at least eight Democrats if all voting Republican senators back the legislation. Democratic opposition has persisted as negotiations continue over provisions addressing crypto interests held by government officials.
The debate also carries implications for competition between traditional banks and digital-asset companies. Banks have opposed provisions that could permit crypto businesses to offer rewards tied to customers’ stablecoin holdings, potentially allowing those firms to compete more directly for deposits, according to Reuters.
That dispute illustrates how Washington’s effort to regulate crypto is increasingly intersecting with competition across the financial sector. Digital-asset companies are seeking rules that allow them to expand products traditionally associated with banks, while established lenders are pushing lawmakers to prevent regulatory differences from giving crypto rivals an advantage.
Related: Catholic Leaders Join Growing Opposition to Crypto Market Structure Bill
